
Front-month December Silver is trading at $27.95, up about 44-cents. Today has been full of favorable data to support the metals in general, and silver is no exception. Below I have attached a long-term chart to give you an idea of price points that the silver contract may visit. The trend is your friend. With commodities heating up, inflation talks are circulating in the markets. In my view, any weakness in silver would be bought rather than sold. Silver could find firm support as the US dollar index continues to retest below 90.00 levels and talks of central banks possibly devaluing the dollar. I wouldn’t consider silver in bearish territory unless it traded below $22.00 and perhaps an upside target of $35.00. If you are looking to participate in the upside, we could consider using options with defined risk.
