SLV: Weighing Up Silver's Bull And Bear Case

Summary

• Surging U.S. real bond yields appear to be putting pressure on investment demand for silver, while a deteriorating economic growth outlook poses a risk to industrial demand.
• However, the metal is now trading at record levels of undervaluation relative to gold and the commodity complex, and should benefit from the ongoing rapid expansion of U.S. money supply.
• On balance, I continue to see the metal as a buy, particularly from a long-term perspective.
• As the world's leading silver ETF, the iShares Silver Trust, which has tracked the spot price with a median 12-month tracking error of just 0.48%, should continue to offer investors direct exposure to the metal.

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Silver prices have come under renewed pressure over the past few days amid some weakness in commodity prices and gold, with the latter appearing to finally succumb to intensifying upside pressure on real bond yields. The metal is

Analyst’s Disclosure:I/we have a beneficial long position in the shares of XAGUSD:CUR either through stock ownership, options, or other derivatives. 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.