The silver ETF, which was listed in May 2006, gained 2.3% on Monday while gold prices climbed above $1,900 an ounce for the first time. [Gold ETFs Rise; Metal Hits $1,900 as Markets Await Bernanke]
At the end of last week the silver ETF broke out to a new all-time relative high against the S&P 500, said Tarquin Coe at Investors Intelligence. [Risk Off: Gold, Silver and Treasury ETFs Outperform]
“On Friday trading broke through price resistance from the early August high. That breakout has the all-important follow-through today,” the technical analyst wrote in a newsletter Monday. “Momentum conditions are a long way from the overbought level of late April.”
Full disclosure: Tom Lydon’s clients own SLV and GLD.