The iShares Silver Trust (NYSEArca: SLV) and ETFS Physical Silver Shares (NYSEArca: SIVR) are each up more than 3% over the past week and those moves have brought the well-known silver exchange traded funds to important technical junctures.
SIVR and SLV are now bumping up against a critical resistance area on their respective charts and if silver prices continue moving higher, the ETFs could be poised to notch some big gains in the near-term. Bolstering the appeal for silver, the precious metal enjoys heavy industrial demand that benefits from an expanding global economy. Over 50% of global demand for silver comes from industries like chemicals, medicine and technological appliances.
Silver and other precious metals enjoyed safe-haven demand as the equities market plunged into a correction. 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. The Fed raised rates for the first time this year earlier this month.
“Gold is doing better, with an 8.47% gain. But silver is sprinting, with a 13.5% gain. If silver keeps up this pace, that would work out to a 65% gain for the year. Now, there’s nothing to say silver must keep up that pace. It could slow down. Then again, it could speed up. We’re in a new precious metals bull market, after all,” according to ETF Daily News.