Time for a Silver ETF Renaissance?

Some say that the price of silver could be ready for a renaissance. If that’s true, it may be time to keep a close eye on silver exchange traded funds (ETFs).

Are we nearing the end of the great silver depression? Theodore Butler for SilverSeek thinks that the days of the silver price depression are just about gone and that the metal could be headed for its true free market price. That’s a price much higher than what it is now, Butler points out. What’s his argument?

• An apparent liquidation cycle taking place on the COMEX for silver and gold futures
• Historically, low-risk entry points are presented when liquidation cycles have exhausted themselves

As for now, the drop in metals prices has removed a lot of risk from the market. There is no way to tell how deep silver sell-offs may go, and when they may end, but the prices are giving a signal that times are conducive to buying sometime soon.

Alas, silver is below its trend line. Will this prediction come to fruition? Keep your eye on the 200-day moving average, and be prepared with an entry and an exit strategy before investing in a fund.

• iShares COMEX Silver Trust (SLV): up 11.6% year-to-date
  

• PowerShares DB Silver (DBS): up 12.1% year-to-date

Comments

[Kimblake:]

I have been hearing for the last 10 years that silver and gold are underpriced and that the real price has to go higher.
If the miners are willing to keep selling it at these current prices why should the price go up?

Jul 13 08:46 AM

[Doc 224899:]

I've been hearing about the future surge in silver prices now for about 2 years. Still, we've seen no lasting correction in silver prices to the old, traditional silver to gold ratio. I think there may be a simple explanation: silver has always been an industrial metal, largely supporting by photo-processing and electronics and other technology and metallurgy applications. Now, with a declining demand for industrial metals, the old silver to gold ratio no longer applies because silver's role as an industrial metal has evaporated.

Please tell me I'm wrong, and why.

Jul 13 11:16 AM

[Sovestor:]

Maybe so....but not hopeful

Jul 13 02:17 PM

[SW Richmond:]

"Time for a Silver ETF Renaissance?"

It's the same time it's been for years: time to either take delivery or be left holding a promise.

Jul 13 02:27 PM

[5142152-337:]

Doc: Please, IMHO, you need to google on industrial uses of silver. Be prepared for a VERY long listing.

Tom Lydon: Don't waste your time with paper silver. Its as it sounds...worthless...if you don't own the real stuff, you will need to buy a shirt and put a very large "L" on it...for LOSER!

Jul 13 03:36 PM

[Living4Divi...:]

Wow! What's this, an end to the 600 Year Silver Bear Market?
Read the following article by Sajal showing silver's persistent downward 600 year decline
seekingalpha.com/artic...
and then come back and tell me how silver is a terrific investment

Jul 13 06:38 PM

[Mark Anthony:]

I encourage people to buy physical preciousl metals. But any one thinking about buying a silver ETF should read this first:

seekingalpha.com/insta...

Draw your own conclusion after you read it.

Jul 14 02:35 AM

[The Vet:]

Has anyone any comment on the way that silver holdings in SLV act?

Looking at the holdings of silver it is obvious that there are long periods where the holdings remain static, typically up to around 20 trading days, followed by a couple of days of sharp moves. The periods of static holdings seem to be when the silver price is dropping but quite significant changes in the POS often produce no change in the shares issued or the silver held. Generally the trend is up with only a few significant reductions.

Jul 14 02:01 PM

[TERN:]

Articles with a question mark in their title are generally a waste of time.

Jul 14 08:23 PM