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Silver rises, gold contracts. One of the most theatrical moves of the month, at least for someone like me, who naturally gets caught up in the drama of market swings. A move that pushes the Global X Silver Miners ETF (
SIL: Silver's Revenge On Gold
Summary
- Silver's rise and gold's contraction highlight a potential capital shift, with SIL ETF moving above recent highs.
- SIL’s holdings do not show significant signs of overvaluation, especially from a forward-looking perspective.
- The macro outlook appears to remain positive for the precious metals sector, and silver demand may potentially benefit from gold’s “excesses”.
- If gold drops, SLV and SIL are unlikely to hold up, especially SIL, due to its high expense ratio and concentrated holdings.
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