However, investors in SLV, the silver ETF, haven’t been selling during the recent pullback, writes Gene Arensberg for Resource Investor.
“More recently, as silver has fallen below $30, instead of SLV holders acting all fearful and rushing the exits, they have been doing a little dip buying instead. For example, in late April with silver then near $30 and threatening to break lower, SLV reported holding 9,552.14 metric tons of silver metal in their London-based custodian’s vaults,” he said.
“Today, as we write, with silver trading either side of $27.00, not far above its $26 implied support, the silver trust reports holding 9,875.75 tons, or more than 323 tons more silver than in April,” Arensberg wrote. “That doesn’t sound like the silver bears have gotten into the thought centers of the funds holding SLV, does it?”
iShares Silver Trust
Full disclosure: Tom Lydon’s clients own SLV.