Silver actually put in a good showing for the week closing up $2.00 higher while setting a new 31 year high in the process. It was unable to maintain its footing above $38 for long but did hold support near the $37 level.
Moving into next week if it can stay above the $37.00 – $36.80 level, it should be able to consolidate and set itself up for a run towards $38 once again. If that support level does not hold, it will drift down first towards $36.50 and then toward $36.
I would prefer to see it stay above $36 as that had been a major barrier to the upside and should now serve as a major support level to the downside if the market is going to press on to new highs relatively soon.
Deliveries for the March contract are picking up as expected since we are running out of days in the month. A total of 236 were issued for Monday with JP Morgan being the big kid on the sell side once again. I should note that there are almost evenly split between issuing silver for clients as well as for their own account. Barclays is once again the big stopper along with Prudential coming in second. Both of those firms apparently have clients who want to own the physical metal.
There has been a total of 1,383 contracts issued and stopped this month with 632 contracts remaining open in the March. I should also note here that the March contract remains at a one cent premium to the May. That is noteworthy.
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