Silver has absolutely launched higher during the trading session on Monday, as by the time the Americans entered the scene, the market has screamed even higher.
Silver
Silver has absolutely launched higher during the trading session on Monday, as by the time we got halfway through the New York session, silver had gained another 12.5% or so. As we are now firmly above the $100 level, and even above the $110 level, one has to wonder whether or not gravity will end up taking hold in this market.
While I can give you 100 reasons as to why silver should continue to go higher, the reality is that it is a very overbought and dangerous market at the moment. For example, if the market were to drop $20, you're talking about something along the lines of a 16% correction. That's not unheard of and in fact can happen in a day or two.
The Risks of a Retail Bubble
This brings in the biggest concerns that I have for most of our readers is that they are retail traders, so while they are making good money on the way up, it only takes a significant knee-jerk dip to wipe out those gains and more. The lesson here is to keep your leverage very low. In fact, with this type of action, you're almost better off with physical silver itself.
I look at this chart and I marvel, but this looks a lot like a bubble. I understand that there are supply constraints, but if the narrative of demand for silver for artificial intelligence data centers starts to wane a bit, that will come into the picture here and cause chaos.
Top Regulated Brokers
However, with all of that being said, I really don't see anything stopping from silver going to the $120 level, possibly even higher. I will say this though, if you own physical silver the spreads now are outrageous, so quite frankly, this is a very difficult market to get your hands on. If you're a CFD trader, it's an excellent market. If you're a futures trader, it's an excellent market as well, until it isn't, and when it doesn't become an excellent market, that's when the real danger begins.
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