The iShares Silver Trust (NYSEArca: SLV) and ETFS Physical Silver Shares (NYSEArca: SIVR) nudged higher last week, bringing their year-to-date gains to about 13%. Even amid concerns that the Federal Reserve could hike interest rates in March, silver appears poised for more near-term upside.
Silver and other precious metals enjoyed safe-haven demand as the equities market plunged into a correction. The metal also maintained its momentum as the Federal Reserve lowered its interest rate outlook to only two hikes this year from a previously expected four rate hikes.
The Federal Reserve is targeting three interest rate hikes this year, which could white on precious metals, but some market observers believe there is upside to be had with the white metal.
“March silver futures prices closed nearer the session high and closed at a three-month high close today. The silver market bulls have the overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.50 an ounce,” according to Kitco.
Along with rallying with its golden counterpart as a safe store of wealth, silver bullion may be strengthening on increased industrial demand while global economies rebound.
Ambitious traders looking for more near-term upside in silver can consider leveraged ETFs, such as the ProShares Ultra Silver ETF (NYSEArca: AGQ) and the VelocityShares 3x Long Silver ETN (NYSEArca: USLV).
Silver’s surge is also boosting mining ETFs, which are among this year’s best-performing non-leveraged ETFs. That group includes the Global X Silver Miners ETF (NYSEArca: SIL) and the PureFunds ISE Junior Silver ETF (NYSEArca: SILJ).
“Silver was last trading around $18.03 per ounce, eclipsing the important $18 level for the first time since early November. Precious metals’ rally this year so far has been fueled by a flight to safehaven assets, even as equities markets continue to hit fresh all-time highs, amid rising interest rates and geopolitical uncertainty,” reports ETF Daily News.
Year-to-date, investors have yanked over $107 million from SLV, but SIVR has seen inflows of nearly $9 million.
For more information on the silver market, visit our silver category.