The amount of silver bullion held by iShares Silver Trust (NYSEArca: SLV) rose to a record this week as the metal’s price climbed above $40 an ounce to a fresh 31-year high.

“While the rebound in economic activity has been behind the move, much of the driving force behind silver’s success has been the influx of investment buying as both individual and institutional level players seek as cheaper alternative to gold,” wrote James Moore at on Friday. “In addition to demand for coins and bars, investment flows into the various exchange traded fund (ETF) platforms remain strong.”

The iShares Silver Trust’s holdings have grown to a record, totaling nearly 360 million ounces.

“Given the gains posted by gold and silver there is the risk of a sharp correction, particularly if the dollar were to recoup some of its weakness,” Moore said.

The iShares Silver Trust was up nearly 2% in morning action Friday.

iShares Silver Trust

For full disclosure, Tom Lydon’s clients own SLV.

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