Most silver exchange traded funds (ETFs) up are up 3% or more today on the heels of China’s decision to not boost borrowing costs.
The decision put silver at its highest price in more than 30 years. According to Commodity Online, the uptick in physical buying by the Chinese and monetary tightening, mixed with physical uncertainty has helped the metal to make gains. [ETF Spotlight: Global X Silver Miners.]
Diana Perkins for America News Online reports that although a slight correction was recently seen in the silver markets, it’s simple profit-taking and nothing to be concerned about. Silver trading is around the $28 range at the moment. [4 Reasons to Take a Shine to Silver ETFs.]
Is more in store? Based on the moves today and the fact that fundamentals appear to be in place for the metal, it wouldn’t be surprising to see it move higher. Consider ProShares Ultra Silver (NYSEarca: AGQ) if you buy into the bullishness.
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.