Silver, SLV’s Stealth Rally

Amid all of the talk about QE 3 and how gold will react, one commodity has slid under the radar. Silver, the other precious metal, seems to have taken a backseat to any movements exhibited by gold, as the commodity has begun what may be another go at $2,000/oz. All the while silver has been performing strongly with very little coverage or attention as compared to that of gold. Of course, some investors like Jim Rogers have been saying for a while that silver is a better buy than gold, but the yellow metal’s luster seems to have ousted any shine from silver [for more silver news subscribe to our free newsletter].

True, gold has been performing very well over the past few weeks, but silver has been outperforming everyone’s favorite commodity. Since the end of July, silver prices have risen by approximately 22%. Perhaps the reason why this went so largely unnoticed is because the majority of the move has been gradual and steady, as opposed to a number of days with high movement. Over that same time period, gold has jumped by about 9.5% with about 100 times the attention from analysts and investors around the world.

Silver has always been a more volatile metal than gold, which may be one of the reasons why it has outperformed, as a high beta in times of prosperity can lead to some impressive gains. Below, we outline several ways to take advantage of a silver rally or for those who may be looking for lucrative short opportunities [see also 25 Ways To Invest In Silver].

  • iShares Silver Trust (SLV): Easily one of the most popular silver securities in the world, this ETF is represented by physical silver. The fund is home to over $10.5 billion in assets and trades nearly 12 million times each day. With physical allocation, SLV can be used as a part of a long term strategy, but its active options market and high trading volume makes it a prime candidate for trading as well.
  • ProShares Ultra Silver (AGQ): For those who really want to put their money where their mouth is, this fund offers a 200% leverage on silver and trades about 1.4 million times each day. It is designed as an instrument for active investors but can be extremely useful to those who feel that silver has nowhere to go but up [see also Gold, Silver, Natural Gas Sitting in Deep Contango].
  • Silver Wheaton (SLW): A mining/streaming company, Silver Wheaton is based in Vancouver and does business all around the world. The stock has a market cap of $12.7 billion and pays out a nice dividend yield of 1.1%. Though it will not be a pure play, this equity ticker will provide exposure to silver prices in an indirect manner.

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Disclosure: No positions at time of writing.

This entry was posted in Actionable Ideas, Asset Allocation, Commodity ETF Analysis, Commodity ETFs, Precious Metals, Silver and tagged , , . Bookmark the permalink.

Commodity HQ is not an investment advisor, and any content published by Commodity HQ does not constitute individual investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities or investment assets. Read the full disclaimer here.

11 Responses to “Silver, SLV’s Stealth Rally”

  1. [...] Stocks around the globe staged a massive rally yesterday as the much-anticipated FOMC decision delivered on expectations. Bullish pressures prevailed as markets cheered on the Fed’s announcement of an additional round of quantitative easing; although markets got what they wanted, the announcement is really a double-edged sword as it suggests that the Fed is still worried about the health of the domestic recovery. In light of this, investors will digest a handful of consumer-centric data releases later today that could tip sentiment in either direction [see also Silver, SLV's Stealth Rally]. [...]

  2. [...] ago in Anatolia (modern day Turkey). When the Europeans came to the New World, they found abundant silver. In fact, in the period between 1500 and 1800, the Latin American countries of Peru, Bolivia and [...]

  3. [...] the iShares Silver Trust is a large ($11 billion in NAV) and liquid (15 million daily volume) withnumerous liquid options. Like the other names on this list, the most active option contracts on the iShares Silver Trust [...]

  4. [...] many have their sights set on silver’s impressive run, or crude oil’s volatility, another commodity has been surging. Gasoline RBOB futures have [...]

  5. [...] many have their sights set on silver’s impressive run, or crude oil’s volatility, another commodity has been surging. Gasoline RBOB futures have [...]

  6. [...] many have their sights set on silver’s impressive run, or crude oil’s volatility, another commodity has been surging. Gasoline RBOB futures have [...]

  7. [...] Global X Silver Miners (NYSEARCA:SIL) is the leader of this group of three, as shares are up almost 18.6% year to date. Relative to the names on this list, SIL has actually done pretty well compared to its physical bullion alternative, as the iShares Silver Trust (NYSEARCA:SLV) is up about 22.4% year to date [see also Silver, SLV’s Stealth Rally]. [...]

  8. [...] a short time ago, silver had been surging relatively under the radar. Its strong gains were out-shined by gold, despite the white metal [...]

  9. [...] a short time ago, silver had been surging relatively under the radar. Its strong gains were out-shined by gold, despite the white metal [...]

  10. [...] a short time ago, silver had been surgingrelatively under the radar. Its strong gains were out-shined by gold, despite the white metal [...]

  11. [...] a short time ago, silver had been surgingrelatively under the radar. Its strong gains were out-shined by gold, despite the white metal [...]

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