Exchange traded funds (ETFs) that invest in precious metals were set to open sharply higher Monday as silver prices jumped more than 6% to almost $50 an ounce.
Silver was trading near levels not seen since 1980 when the Hunt brothers tried to corner the market.
“Everyone is buying,” a Hong Kong-based dealer told Reuters. “There is stop-loss buying, as well as a good buying interest from China.”
Holdings in the largest silver ETF, iShares Silver Trust (NYSEArca: SLV), have risen 2.4% so far this year, according to the report. The silver ETF has about $16.6 billion in assets and roughly 358.5 million ounces of silver, according to manager BlackRock.
Gold futures, meanwhile, were up nearly 1% Monday morning to a new record high.
The silver ETF has jumped more than 70% over the past three months, while SPDR Gold Shares (NYSEArca: GLD) was up 12% for the three months ended April 20, according to Morningstar.
iShares Silver Trust
Full disclosure: Tom Lydon’s clients own GLD and SLV.