The latest data on the holdings of the iShares Silver Trust ETF (NYSEARCA:SLV) show surprising steadfastness by shareholders, the tonnes in the trust still higher today than they were before the metal's price fell 30% late last month.
A combined 74 tonnes exited the trust last Thursday and Friday, however, this came after a big 200-plus tonne addition earlier last week, just after the silver price plunged.
While not exhibiting the same sort of demand spike now being reported at coin shops around the world, that is, after gold and silver suddenly became more affordable, the ETF holdings have been far more stable than most people might have expected after a rout like this.
It had long been thought that a good portion of SLV shares were held by traders who would quickly bail when prices began a major correction. That was surely the case back in late April and early May when the silver price fell from $50 an ounce down to below $35 an ounce and the stockpile of silver bars in the SLV trust fell by 800 tonnes in a matter of days.
The fact that this has not happened this time around is clearly bullish for the metal and, so far, is an indication that the "hot money" left SLV back in May.
Disclosure: I am long SLV.