After falling off over December, silver exchange traded funds are starting to pick up and are currently testing their long-term trend line.
According to BNP Paribas, despite the drop over the past month, physical silver ETFs saw net inflows of 311 metric tons of silver bullion, or a monthly increase of 1.6% over December, Wealth Daily reports.
Silver futures were 2.2% higher Thursday and are up around 1% for the year.
However, Soceite Generale believes silver may experience a lackluster year due to a “lack of bullish triggers,” reports the Wall Street Journal. The bank cut its estimate on average silver price to $31 per ounce from $34 per ounce, or 8.8% – silver currently sits at $30.9.
“In our view, the market over-reacted with the move extended by technical selling,” Robin Bhar, an analyst with Societe Generale, said in a report.
After the price fall over December, bargain hunters are scooping up precious metals at the cheaper prices, Bhar added.
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Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own SLV.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
- BNP Paribas