
- Silver continues to surge, reaching $65 with strong momentum and extreme volatility.
- Pullbacks may offer opportunities, but liquidity risks, short covering, and structural shortages raise concerns.
- A breakout above $65 could target $68 amid intense speculative pressure.
Silver is ridiculous yet again, as we have touched the $65 region in the silver futures market. And it looks like there’s just no real hope of this thing breaking back down. That doesn’t mean that you jump in and start buying it hand over fist because this is a market that can hurt you if it does pull back. That being said, I do like the pullback as a potential buying opportunity.
The $60 level is the most obvious spot on this chart. But quite frankly, this is a market that I think we’ll see a lot of interest near the $62 level as well. If we break above the $65 level, that’s just more impulsivity in this market. And I do think we will eventually, but I also recognize that something is going on here, and nothing good can come of this by the time it’s all said and done.
Liquidity Risks and Market Stress
Yes, you can make money holding silver, and I certainly think those of you who have been well done, but the problem that you have is that there will eventually be massive liquidity issues and blowing up as traders who were short silver suddenly get called to the mat. Banks are going to potentially be big losers as well. We’ll just have to wait and see. But if this thing breaks $65 again, we’re in another situation where you just don’t know where it ends. Based on the bullish flag that we broke out of a couple of days ago, in theory, you’re looking at about $68 an ounce. That’s insane. However,
It is what it is, and the momentum is there. For years, we’ve had a significant undersupply of silver, but nobody seemed to care. And now all of a sudden, they do because the potential for AI using silver is a big mover of this market. Furthermore, there’s also a physical silver shortage in general; we’ll just have to wait and see how this plays out. But this is something I get a lot of messages and emails about. And this is going to end poorly. That being said, you can buy it, if it goes against you, you’ve got to get away from it because this is a market that will really punish you for being wrong.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.








