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SLVer Bells Ringing for ETF Investors in 2021

Ben Hernandez
·2 min read

This article was originally published on ETFTrends.com.

When looking at precious metals, investors have plenty of choices, from the typical gold and platinum to more intricate options like palladium. Yet silver that may outshine them all, with ETFs like the iShares Silver Trust (SLV) gaining in the process.

The fund is already up roughly 40% as precious metals gave investors a safe haven option amid the pandemic sell-offs earlier this year. Gold may have gotten most of the shine in 2020, but 2021 could be silver's year.

SLV seeks to reflect generally the performance of the price of silver. Overall, SLV gives ETF investors:

  1. Exposure to the day-to-day movement of the price of silver bullion

  2. Convenient, cost-effective access to physical silver

  3. Use to diversify your portfolio and help protect against inflation

ETF investors looking for an opportunity to buy may have it now since the fund pulled back slightly from a high in August. Looking at its 6-month chart, the relative strength index (RSI) is showing the fund has yet to breach overbought levels and when applying a moving average convergence divergence (MACD) filter, the exponential moving average (EMA) line is above the signal line -- both signaling opportunities to buy just ahead of 2021.

That $27.10 price high made on August 10 will be one of the key levels to look at to see if there's any resistance. If silver breaks that level, then SLV could have the 2021 that analysts are projecting.

SLV Chart
SLV Chart

Not Gold, Not Platinum: The Case for Silver in 2021

A recent Kitco News article breaks down how silver can rise above its peers:

"The silver market is garnering a lot of attention heading into 2021 and according to Main Street retail investors, it is the precious metal they will be keeping an eye on in the new year," the article said. "Investors have been waiting a long time for silver to finally live up to its reputation and outperform gold. For the fifth consecutive year, retail investors see the grey metal as the top asset in the precious metals sector."

The survey results speak for themselves:

"This year, 1,015 people participated in Kitco News’ Outlook 2021 online survey. A total of 568 Main Street voters, or 56%, said they expect silver to fare better than other metals in the year ahead," the article added. "The bullish outlook for silver come as the precious metal has seen a historic rally since falling to $12 an ounce due to financial market turmoil due to the COVID-19 pandemic. Since its lows, silver prices have rallied more 115%."

For more news and information, visit the Equity ETF Channel.

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