SLV: Here Is Why This ETF Is Likely Headed Much Higher

Jun. 10, 2019 5:37 AM ETiShares Silver Trust ETF (SLV)26 Comments


  • With the Fed likely to cut rates, the dollar as well as bond yields are likely to head lower from here.
  • Inflation is on the rise and is likely to continue to go higher as rates are lowered.
  • Speculators appear to be extremely bearish on silver right now - another bullish factor for SLV.
  • The gold-to-silver ratio is at around 90, a level not seen in decades, implying silver is likely undervalued here.
  • Ultimately, as the Fed lowers rates and possibly implements QE-like programs in the future, SLV should go much higher.
  • This idea was discussed in more depth with members of my private investing community, Albright Investment Group . Start your free trial today »


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The iShares Silver Trust ETF (NYSEARCA:SLV) has had a rough year, as the ETF is down by about 12.5% over the past 12 months. However, with the Fed likely to ease monetary policy going forward, the dollar as well as interest rates are likely to head lower, which should enable SLV to go higher.

slv chart


Additionally, the gold-to-silver ratio, the COT report, as well as SLV’s technical image imply silver/SLV is significantly undervalued at current levels and is likely to go much higher in the intermediate and longer term.

Despite the recent rebound, silver/SLV is trading around multi-year lows, and given the current economic atmosphere, it is likely to go substantially higher from current levels.

SLV: A Great Way to Build Exposure to Silver

SLV is an exchange-traded fund that is designed to give investors a cost-efficient way to gain access to the silver market without having to buy silver futures or the physical metal.

The SLV ETF fund is engineered to mimic the spot price of silver. Each share owned by an investor represents a fractional ownership in the fund, which holds over 325 million ounces of physical silver worth roughly $4.5 billion.

SLV is an efficient and convenient trading vehicle, as it mimics silver's spot price, yet investors do not need to deal with exchanges that facilitate futures contracts and do not have to pay prices over spot to procure the physical asset.

It is also extremely liquid and can easily be bought and sold like any other highly liquid stock or ETF. In addition, SLV has very attractive options that can be traded with great ease.

Since SLV is physically backed by silver and mimics the commodity's price almost identically, I will refer to the ETF and silver interchangeably throughout some parts of this article.

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This article was written by

Victor Dergunov profile picture
The #1 Service For Diversified Portfolio Profits

Hi, I'm Victor! It all goes back to looking at stock quotes in the old Wall St. Journal when I was a kid. What do these numbers mean, I thought? Fortunately, my uncle was a successful commodities trader on the NYMEX, and I got him to teach me how to invest. I bought my first actual stock in a company when I was 20, and the rest, as they say, is history. Over the years, some of my top investments include Apple, Tesla, Amazon, Netflix, Facebook, Google, Microsoft, Nike, JPMorgan, Bitcoin, and others.

Disclosure: I am/we are long SLV. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article expresses solely my opinions, is produced for informational purposes only and is not a recommendation to buy or sell any securities. Investing comes with risk to loss of principal. Please consider consulting a professional before putting any capital at risk.

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