Silver Takes Another Step Back

Silver is under pressure this week, with charts showing that the metal fell to around $63.87 per ounce on Wednesday, down 0.35% from Tuesday. That follows a much sharper decline earlier in the week, when silver dropped more than 2.5% in one session.

The bigger picture is becoming more interesting. Silver has been hit by a stronger dollar, higher-rate expectations and profit-taking, while gold has shown somewhat better resilience. At the same time, silver's industrial demand gives it an additional source of potential upside if economic conditions improve.

For investors, the key question now is whether this is simply a healthy correction or the beginning of another leg lower. With silver trading near the $64 area, the next few sessions could be important for determining whether buyers step back in.

I’m watching $64 as an important area of support. A sustained break lower could open the door to more downside, while a recovery back above$65 would improve the short-term picture. Silver remains volatile, but after a significant pullback, the risk/reward is becoming worth watching closely.

Personally, I have not bought physical silver yet because of the premiums. When the price of the metal is already elevated, paying a substantial premium over spot makes the entry less attractive to me. For now, I'm watching the paper price and waiting for either a better entry point or a situation where physical premiums become more reasonable.