Investors in silver exchange traded funds have viewed the recent price weakness and consolidation as a chance to buy the metal as holdings in silver-backed ETFs climb back toward record levels.
Silver held in exchange traded products has risen for three months and is now valued at $16.2 billion, Bloomberg News reports.
“Investors bought 797 tons through silver-backed ETPs this year and now hold 18,093 tons, equal to more than eight months of global mine output,” according to the report. “They sold a net 812 tons from ETPs last year. Total assets are now 2.9% below the record 18,639 tons reached in April 2011.”
The $8.8 billion iShares Silver Trust (NYSEArca: SLV) is the largest ETF with about 9,742 metric tons of silver.