Why the Silver ETF Has Been Sterling

The commodity market is showing signs of strength, and many consider gold as the best haven, however, silver is beginning to gain the spotlight, and the related ETF is rallying. Many investors consider gold an inflation hedge, but don’t count out other metals for both your own use as well as investment. Ryan Campbell for Forbes also explains that wiring for appliances and electronics requires a lot of copper and silver, so if the demand increases for these goods, so will the demand for these and other highly conductive metals.

The fact that silver prices are moving in an upward direction are positive signs that the markets may be, too. This also indicates that consumption may be mending and ready to rebound. Another benefit of going to silver is that it’s cheaper than gold, but no less useful as an inflation hedge.

The silver ETF, iShares Silver Trust (SLV), has popped above its 200-day, and is up 19.7% for the last month.

• iShares Silver Trust (SLV): up 24.8% year-to-date

For full disclosure, Tom Lydon’s clients own shares of SLV.

Comments

[DONE_SONZ:]

Many investors consider gold an inflation hedge, but don’t count out other metals for both your own use as well as investment.Silver gets classified as an industrial metal as well as a prescious metal.Copper too.That is the double edge sword for silver and copper.Does not apply to gold.Bullish on gold,neutral to bullish on silver,neutral on (copper) for now.

May 21 03:31 PM

[Mad Hedge F...:]

You have to wonder if silver is going to break out of its recent tedious range to the upside. The trigger could be a selloff in global stocks from their recent heady nine week run. The metal is at the low end of its historic valuation relative to gold, which has ranged between 12:1 (Remember the Hunt Brothers?) and 70:1m and is currently 65:1. Geologically, silver is 17 times more common than the yellow metal. All of the gold ever mined is still around, from King Solomon’s mine, to Nazi gold bars in Swiss bank vaults, and would fill two Olympic sized swimming pools. But most of the silver mined has been consumed in various industrial processes, and is sitting at the bottom of toxic waste dumps. Silver did take a multiyear hit when the world shifted from silver based films to digital photography. Now rising standards of living in emerging countries are increasing the demand for silver, especially in areas where there is a strong cultural preference, as in Latin America. That means were are setting up for a classic supply demand squeeze. I think we could run from the current $13.70/ounce to the old high of $50/ounce in the next economic cycle. Since silver can trade with double the volatility of gold, this forecast could prove conservative.

May 21 04:54 PM

[one eye:]

My Next major target is $17oz. Gold at $980 should give silver a stiff shot in the Butt.

May 22 10:06 AM

[john redmond:]

In the early eighties when we had the last great inflation panic, Gold went up less than four times while Silver increased five times. If you think we in America are in for a repeat of Lindon Johnson's runaway printing press as I do, then Silver is an excellent investment.

May 26 12:33 AM