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iShares Silver Trust Message Board

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  • mishka8793 mishka8793 May 6, 2009 10:35 AM Flag

    What's the reason for this surge?

    I think it has more to do with a hint at economic recovery. So, it's the other use of silver (other than the ones you listed) that's driving it. That is, its use as an industrial commodity.

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    • I agree that some of the better than expected economic data is pushing silver higher. A barometer I like to use with silver is the price of base metals. This shows how the industrial component of silver is influencing the price. Ticker symbol: DBB is the most user-friendly gauge of demand for industrial metals. SLV has moved closely along with DBB in the last 5 trading days if you take a look at the charts.

      Additionally, SLV has broken its 50-day moving average to the upside (it was below it all throughout April). This may entice the technicians to buy a little, too. I’ve seen some people see a cup and handle pattern, which can be interpreted as bullish.

      Overall, the fundamentals and the technicals are lining up quite well for silver bulls. I think silver is one of the best “reflation” investments out there.

    • That makes sense -- thanks. Yet another reason SLV is such an attractive investment -- heads up in a down economy and up in an up economy.

16.00-0.05(-0.31%)Jun 1 4:00 PMEDT