Silver ETFs are outperforming gold during this week’s breakout rally in a bullish sign the trend may continue as investors position for inflation.
The iShares Silver Trust (NYSEArca: SLV) is up 8.7% so far this week, more than doubling the 3.3% gain for SPDR Gold Shares (NYSEArca: GLD). [Gold ETFs to Play the Breakout]
Trading volume in SLV has picked up this week. Also, the silver ETF traded above its 200-day simple moving average on Thursday for the first time since early March.
“Gold and silver prices gained some luster Thursday, after the minutes from the Federal Reserve’s last meeting revealed that the central bank is leaning toward launching a third round of bond purchases, known as quantitative easing or QE3,” CNNMoney reported. “In fact, the additional stimulus could come ‘fairly soon’ unless the economic recovery regains substantial and sustainable strength, the minutes said.”
Spot silver rose about 3% on Thursday to over $30 an ounce and the highest level since May.
iShares Silver Trust
Full disclosure: Tom Lydon’s clients own SLV and GLD.
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