We are hereby giving a BUY signal on silver, for a short term upwards move of $1.00 from its current level. We expect silver to move up to nearer its 50 and 200 day day moving averages in the next week, possibly the next few weeks.

In previous articles, we have talked about the reasons why we thought silver is looking very bullish at the moment. We watched the drop to $11.06 in trading on Thursday but we wanted signs that the drop was over, or nearly over so we could be confident that the future downside was limited.

However, having watched silver trading in Sydney and Hong Kong overnight, we are confident that the future downside is limited so we are signalling a BUY on silver bullion.

We have placed a financial spreadbet on the December 2007 contracts for silver, on the London market, at the futures price of $12.15/ounce. We have a stop at $11.15 and a limit at $13.15. Therefore if silver falls one dollar, we are automatically stopped out and lose all our capital that was invested in this bet. If silver prices rise one dollar, we will double the capital invested in the trade.

Short term trading is not for everyone but we have signalled this BUY for our readers who feel comfortable with the time frame and risks associated with these type of trades. Subscribe to The FREE Silver Prices Newsletter to stay updated on the silver market.