Silver Weekly Price Forecast – Silver continues to drift lower
Silver markets have broken decidedly below the $15 level again, and now it looks as if we are testing the $14.50 level. While I am bullish of silver longer-term, I am bullish of physical silver, not paper assets. Because of this, I don’t believe in buying CFD or futures markets, but given a choice I would certainly be in the CFD markets right now as the futures markets are going to be extraordinarily volatile and dangerous. Beyond that, they are flat-out expensive.
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The $14.50 level has been support more than once, so if we break down below there I think we go looking towards the next significant level, the $14 handle. However, if we can break above the $15 level, I think we could gain $0.50, and then perhaps even move all the way to the $17 level longer-term. However, this will not happen until we get the strength in the US dollar rolling over, something that doesn’t look ready to happen quite yet. I believe that the next few weeks will probably continue to be buried for silver, but ultimately we should find buyers somewhere below here. This is why I buy physical silver, because losing a dollar on 10 ounces isn’t a huge hit to my personal finances. However, losing a dollar on 10 contracts is an entirely different conversation. Silver is a very dangerous market to play in large quantities, so while I like it, I’m not quite that brave. $14 has caused a major bounce recently, so will have to see whether or not history repeats itself.