Now that silver prices have brushed 30-year highs and silver exchange traded funds (ETFs) surge past all-time highs, it’s time for a gut check.
Silver prices could be poised to go even higher than they are. Primarily driving the price now is safe-haven buying, driven by beliefs that governments around the world will enact more stimulus and weaken their currencies. There also may be less of the metal to go around here, too. According to Bloomberg, silver exports from China, the world’s largest, may drop about 40% this year as domestic demand from industry and investors climbs. [Minor Metals ETFs Generate Major Interest.]
John Schmul for Financial Post reports that although precious metals prices have a positive outlook, investors are cautioned that a short-term pullback may be in the offing. Both silver and gold have enjoyed large price spikes, and many analysts feel that over the long-term, this trend has legs. [Behind Silver ETFs Meteoric Rise.]
You can see where ETFs are in relation to their 200-day moving average on our ETF Analyzer. You can also sign up to be alerted to a trading opportunity in silver ETFs so you don’t miss a pullback or another potential long-term uptrend. There are six ways to play silver with ETFs, including these:
- iShares Silver Trust (NYSEArca: SLV)
- ETFS Physical Silver Shares (NYSEArca: SIVR)
- PowerShares DB Silver (NYSEArca: DBS)
- ProShares Ultra Silver (NYSEArca: AGQ)
Tisha Guerrero contributed to this article.
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.