As the US dollar continues to operate as a wrecking ball against most commodities, silver prices have experienced a big decline during Thursday’s trading session. Obviously, the silver market is very volatile and susceptible to the U.S. dollar, so this all makes sense. At this moment, it appears that silver will ultimately attempt to reach the $20.00 level, but there may be sporadic gains in the interim. Ultimately, I have no interest in purchasing silver, and I believe the price might eventually go below $20.
If that level is breached, the market is expected to experience a period of extreme volatility before coming apart once more. Ultimately, I believe that once we break below the $20 level, there is a high probability that we will come around and rise, just to be battered and driven down to the $18 level. Once we reach that point, we will likely increase the price to $15. As long as interest rates climb in the United States and the currency strengthens, there is no genuine chance for silver to rise. Beyond that, there are other worries with the industrial use case scenario, which appears improbable at best.
Silver will undoubtedly continue to decline so long as the economy continues to contract. I do not feel silver has any genuine prospects at this time, thus I view rallies as opportunities to begin shorting once more. Not until we break over $22.50 could a rally be taken seriously, in my opinion.