SLVP Is A Risky Bet Against The USD Despite Discount From NAV

Summary

  • Gold and silver are typically seen as safe havens in economic turmoil.
  • However, in this case, the dollar can be seen as a safe haven, where treasury yields are finally yielding more than the cost of FX hedges.
  • Even other currencies typically seen as havens like the Yen have lost that status to a dollar in the era of the Fed hiking rates.
  • If markets decline, it'll be for all the same reasons that make the dollar even more attractive. We wouldn't make a safe haven bet on SLVP now when >50% is silver/gold exposed.
  • Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More »

Gold bars and coins

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The iShares MSCI Global Silver Miners ETF (BATS:SLVP) is a bet primarily on silver but also gold exposures, and to general metallic exposures. The declines in silver and general values of metals, including those for industry, have contributed to the YTD

slvp holdings

SLVP Breakdown

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This article was written by

Author of The Value Lab
A long-only voice with eclipsing growth through 2020 and 2022 bear markets.

Valkyrie Trading Society seeks to provide a consistent and honest voice through this blog and our Marketplace Service, the Value Lab, with a focus on high conviction and obscure developed market ideas.

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