SLV hits a new 52-week high as silver prices surge past $35, driven by global uncertainty and supply deficits.
With silver soaring past $35.90 on supply deficits and dollar weakness, ETFs like SLV and SIL are poised to ride the rally.
While gold holds the precious metals spotlight with its impressive market cap and recent price surge, silver appears poised for a significant resurgence.
A notable wave of trading activity swept through several silver-linked assets in early June. Investors saw a significant jump in call option volumes for multiple silver-related equities.
The recent U.S. credit rating downgrade is a long-term catalyst for silver, making me feel more bullish on both iShares Silver Trust ETF and abrdn Physical Silver Shares ETF. Historically, both SIVR and SLV funds have demonstrated a strong negative correlation with the dollar index. I expect this negative correlation to support higher silver prices as the dollar index faces pressure.
Silver's dual role as a precious metal and industrial commodity makes its price influenced by inflation, real interest rates, and industrial demand. Rising inflation and negative real interest rates boost silver's appeal, while a strong USD and high real rates can weigh it down. Industrial demand, especially in high-tech and green energy, is a long-term driver, with supply constraints adding to the bullish outlook.
The iShares Silver Trust (SLV), the largest silver-affiliated ETF, has been in the green for 6 out of the past 9 weeks. On Monday, it held steady above the crucial support zone of $28.00 to trade at $28.91 as at the time of writing.
Meta Platforms (META) reports earnings after the closing bell, and @Theotrade's Don Kaufman is bearish on the Mag 7 company. He thinks Meta's significant run higher could end as Don expects its report to underdeliver.
SLV and the precious metals markets may provide a hedge against the excessive issuance of government debt in China, Japan, and the U.S. Rising government debt in major economies is a bullish catalyst for the trade in the silver market. Silver transitioning from laggard to the gold trade.
The iShares Silver Trust (SLV) has crashed by over 17% from its highest level in 2024 and is nearing a bear market. It has dropped to $26, its lowest level since September 11 last year.
The iShares Silver Trust (SLV) had modest returns in 2024 as gold and silver became some of the top-performing commodities of the year. The SLV ETF rose by 24%, making it one of its best years in a long time.
Silver has been on a historic bull run for the last two years — at press time, the precious metal is trading in close proximity to a 12-year high. The gray metal has, notably, outperformed gold in that timeframe — buoyed by both high demand and its increasing popularity as a store of value.