At the end of April, the first silver exchange traded fund, iShares Silver Trust (SLV) began trading.  This ETF gives investors direct access to silver and since it’s launch, SLV has become the largest single buyer of silver.  The ETF is up over 7% since it started trading.

What is going to happen to the demand of silver after SLV is around for a year?  If the iShares Comex Gold Trust (IAU) is any indication, then SLV will continue to increase purchases of silver.  Silver, like gold, continues to reach new highs and as demand for this ETF continues, it could be a driving factor in the price of silver.  Commodity analysts say it is late in the economic cycle and that investors should be cautious.  The last silver correction in 2004, brought the price down 22% in less than a month.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.