Silver may trade around $17.00 for most of this week, as investors return more forcefully to this market. Price dips below this level have been taken as buying opportunities over the past two weeks.

This increased buying may have come more from fabricators than from investors. Combined exchange traded fund silver holdings have been little changed at 465.57 million ounces since 22 December.

Reduced activity from investors during the last couple of weeks may have contributed to the relatively lower silver price volatility than in previous weeks.

A price decline toward $16.00 – $16.25 may see increased buying, however, from both end-users and investors. On the upside, a price rally toward $18.00 also would be expected to spark buying from fabricators and investors.

Fabricators may buy on concerns of having to purchase silver at higher prices later, while investors may buy in expectation of higher prices.

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