In late May, ETF Securities noted silver volatility was hovering around multi-year lows.
“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,” ETF Securities said at the time. [Silver ETFs Regain Lost Shine]
Since May 30, the iShares Silver Trust (NYSEArca: SLV) and the ETFS Physical Silver Shares (NYSEArca: SIVR) are up about 12%.
SPDR Gold Shares
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD and SLV.