The silver markets have retreated somewhat during Wednesday’s trading session, as the $24 level continues to provide some resistance. At this point, I believe it is more probable than not that we will continue to engage in a back-and-forth, perhaps attempting to run out the clock before the end of the year. Obviously, silver is an industrial metal, which works against it in this environment, but I also know that the aspect of silver that relates to wealth preservation is almost likely going to appeal to traders at the time.
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Between now and the end of the year, I believe we will continue to oscillate between $22.50 and $24.25 per share. Regardless, I do not anticipate large price movements, but I believe that most pullbacks will be viewed as potential buying opportunities in a market that has decisively turned bullish. In such a case, it makes reasonable that we would eventually break considerably higher, especially if gold begins to surge, as the two tend to move in tandem over the long run.
The US dollar can affect the silver market, but it is not required to do so. Keep this in mind, as correlation trading based on laziness can get you into problems in the current situation. Consequently, pay particular attention to pullbacks and balances, as they may present long-term chances. I continue to favor gold and a bullish run over silver since silver tends to be extremely volatile and consequently less reliable.
