Just over a month ago we were marveling at the fact that silver was solidly over $10 per ounce. I just checked the charts at kitco.com, (see: http://www.kitco.com/charts/livesilver.html) and spot silver was at $12.80 per ounce! (As a data point: The New York close was at $12.05 just four days ago--Friday April 7th. Quite a change since then!) At the current spot price, means that a $1,000 face value bag of pre-1965 circulated ("junk") silver U.S. coinage worth $9,152 wholesale. (Assuming 715 ounces in a typical bag of well-worn coins.)
The silver market is showing all of the signs of a major long-term bull. Rather than the typical rallies and pull-backs, it is now "stair-stepping" upward. Thus, there is presently no chance to "buy on the dips" unless perhaps you buy on intraday dips.
The word on the street is that if New York spot silver closes at over $12.50 an ounce for three days in a row, then there will likely be a big short covering rally, or perhaps even a full scale "short squeeze." As the short sellers scramble to cover their positions, we may see silver to zoom up to $16 an ounce, or higher. I'm still predicting $20 silver by next February ('07), and perhaps even $40 silver by the end of Aught Eight.