Chart of the Day: Gold and Silver ETFs

ETF Trends

Yesterday amid continued carnage in equities, precious metals finally caught a bid after a prolonged sell-off that has oddly coincided with the weakness in equities throughout May.

The iShares Silver (SLV - News) rallied more than 3%, and the ETF has actually seen net inflows in recent sessions despite the largely negative net price action.

Before yesterday’s bounce, SLV had traded the day prior with a $25 handle, and briefly touched its lowest levels since late December of last year. Still, the ETF remains substantially lower than both its 50 and 200 day moving averages (closing price was $27.24, 50 day MA is $30.41, 200 day MA is $32.53).

SPDR Gold (GLD - News) and iShares Gold (IAU - News), two prominent ETFs that track the price of Gold bullion, also rallied yesterday notably, popping more than 2% after literally a few weeks of very weak performance.

Year to date, Silver has eked out a small gain, with SLV up 1.11% and Gold is up 0.53%. In the trailing one year period, Silver has notably lagged spot gold prices, down 17.67% versus Gold up 5.57%. [Gold ETFs Rally to Weekly Gain]

Those who believe that Silver is attractively valued at current levels and looking to leverage a short term trade to the upside may consider ProShares Ultra Silver (AGQ - News) or VelocityShares 3X Long Silver ETN (USLV - News) which deliver the daily leveraged performance to silver spot prices, 2 times and 3 times long respectively.

PowerShares DB Silver (DBS - News), ETFS Physical Silver (SIVR - News) , and UBS E-TRACS Silver (USV - News) are also long only, unleveraged alternatives to Silver exposure, while ProShares UltraShort Silver (ZSL - News) and VelocityShares 3X Inverse Silver ETN (DSLV - News) are leveraged/inverse trading vehicles tied to Silver.

iShares Silver

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silver-etf


For more information on Street One ETF research and ETF trade execution/liquidity services, contact pweisbruch@streetonefinancial.com.

Full disclosure: Tom Lydon’s clients own GLD and SLV.

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