Silver exchange traded funds are making a strong move to the upside in early 2012, reversing some of the damage inflicted by multiple sell-offs in the wake of the metal’s spike to about $50 an ounce.
The iShares MSCI Silver (NYSEArca: SLV), PowerShares DB Silver Fund (NYSEArca: DBS) and ETFS Physical Silver Shares (NYSEArca: SIVR) gained about 3% on Friday to climb above the 50-day moving average and falling trendline resistance. [What’s in Store for Silver ETFs?]
Earlier this week, Sprott Physical Silver Trust (NYSEArca: PSLV) announced a follow-on offering of about $300 million, the proceeds of which will be used to purchase silver. [Physical Silver ETF Falls 9% After Follow-On Offering]
Silver ETFs ended 2011 with losses but are off to a big start this year, gaining more than 10% so far. They have also been outperforming gold prices in 2012, a bullish signal for precious metal ETFs. [Gold ETFs Size Up 200-Day Average as Dollar Weakens]