There is little need to write much for silver, as most of the arguments pertaining to gold, and described in the Gold Market update, apply in equal measure to silver.

Silver broke down from a Head-and-Shoulders top area and its decline culminated in a capitulative panic, identical to that in gold, that has brought it down to a parallel zone of strong support in the vicinity of its 200-day moving average, which is a classic "buy spot". Like gold it is believed to need a period of basing around the current level, that may last for a month or two, before it is ready to go up again. Note that silver may dip a little further short-term, perhaps close to $9, which would be regarded as an excellent buying opportunity.

Traders should keep in mind that there is one scenario, as with gold, that could knock silver down further, and that is the situation where interest rates get out of control and rise sharply, probably leading to a strong rise in the dollar. For this reason it is considered wise to place stops, say below $9. You could get whipsawed out doing this, of course, but there is always the option to get back in again if the picture subsequently improves, and you won't have missed too much.