“There is entirely too much headwind and uncertainty concerning the U.S. dollar not to mention a 100% chance that interest rates will rise, giving a higher-yielding haven to safe money relative to that of silver,” Adam Koos, president of Libertas Wealth Management Group, said in the article.
Consequently, over the short-term, investors should wait or even hedge against a fall with inverse silver ETF options. Traders can take a look at the VelocityShares 3x Inverse Silver ETN (NYSEArca: DSLV), which takes the -300% performance of silver, and the ProShares UltraShort Silver (NYSEArca: ZSL), which takes the -200% performance of silver price movements.
“Short-term and medium-term silver [investors]should wait for a clear trend reversal and then invest,” Chintan Karnani, chief market analyst at Insignia Consultants, said. Meanwhile, long-term investors can invest in small increments, buying the same dollar value amount on any 15% dip, Karnani added.
The silver ETFs are still trading below their trendlines. For instance, SLV is 2.2% below its 50-day simple moving average and 4.3% below its 200-day.
iShares Silver Trust
For more information on the silver market, visit our silver category.
Max Chen contributed to this article.