GLD has seen second-quarter outflows of $1.1 billion, but SLV and SIVR have taken in a combined $53.7 million this quarter. Silver’s waning volatility could also be a seen the metal is nearing a rally.
“History indicates the recent decline in silver price volatility to the lowest levels in over a decade(at the beginning of May), as measured by 30-day volatility, may be a precursor to a strong price move. In our view, downside risk is limited with industrial demand picking up and supply in decline. With the silver price less than half its 2011 peak and futures shorts already elevated, we believe the next strong trend price move is likely to be up,” according to ETF Securities.
iShares Silver Trust
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD and SLV.