Silver ETF

Silver ETF Holdings Decline

August 11, 2011 By Jeremy 1 Comment

Silver prices don’t seem to be keeping pace with gold prices as of late. Silver ETF holdings are a bit down. This is somewhat surprising, as usually gold and other precious metals can act as a good indicator or what silver will do. However, with the current state of the economy, silver looks like it is going to do what it wants.

Holdings of the iShares Silver Trust (SLV) declined by 86.36 tonnes on the week but have gained 236.41 tonnes since July 1st when silver prices began rallying.

As we said above, silver has not kept pace with gold, probably because of the fact that industrial demand for silver has gone down a little due to the severe economic downturn. Silver closed Wednesday at $39.39, up $1.58. Silver began the year at $30.67 and is now up by $8.72 on the year returning investors a gain of 28.4%.

The SLV peaked in late April at the $50 level before prices corrected to the low 30′s. The SLV has had an average annualized total return of 25% over the past three years.

The iShares Silver Trust currently holds 314.2 million ounces of silver valued at $12 billion. Silver ETFs are still an excellent investment, as silver will be a very sought after precious metal for the foreseeable future.

Silver EFT Grows 5% as Precious Metals Remain Strong

June 8, 2011 By Jeremy Leave a Comment

It seems that our country’s current economic worries are not really affecting the prices of precious metals, especially that of silver and gold. Both silver and gold jumped, while Silver EFT saw a 5% increase.

The iShares Silver Trust (SLV) is up 2.5%. In futures markets, silver contracts for July delivery, the most active, are up 97 cents to $37.16 an ounce. Those opting for leverage are watching as the ProShares Ultra Silver (AGQ) moves higher by 5%. The SPDR Gold Trust (GLD) is ahead by 0.7% and August contracts for gold on the Comex are up $10.20 to $1,552.60 an ounce.

It seems we cover this in many of our articles, but the volatility of silver makes it love/hate investment for companies and individuals who are dealing with the precious metal on a daily basis. The price of silver genuinely seems to fluctuate on a daily basis. Not only does it fluctuate, but it fluctuates up and down in fairly large percentages.

Analysts at Commerzbank wrote Monday that while the U.S. dollar might remain strong, weak U.S. economic data and expectations that the Fed will maintain key interest rates at the current “very low level for even longer,” should hold “opportunity costs” for precious metals at relatively low levels.

Filed Under: Silver ETF

Shorting Silver With the ProShares UltraShort Silver ETF

March 25, 2011 By evossman 1 Comment

We’ve read a lot of people lately saying that the price of silver is too high for their liking. The historic ratios to gold are too off. There isn’t enough demand. What are people thinking?

The list goes on, but yet, the price of silver continues to rise.

So what if you’re one of those people who think that the price of silver is going to tank. You think that the central banks around the world are going to stem inflation, the unrest we see today is going to be settled, and the all mighty dollar is going to rise.

Are you one of those people?

Well, if you are, then you will most likely want to look at the ProShares UltraShort Silver ETF. For those not familiar with UltraShort funds of this nature they look to get double the inverse of whatever the underlying investment would be. In this case silver. They look to get 200% return as the price of silver bullion goes down.

The symbol for this ETF is NYSE:ZSL. It’s trade on the New York Stock Exchange and offered by ProShares. The ETF doesn’t invest in bullion but rather financial instruments whose underlying value is based on the price of silver.

We’ll be investigating this further for you but thought we would kick start the series on different ETFs this way.

Filed Under: Silver ETF Tagged With: ProShares, ZSL

How Do You Short the Price of Silver?

January 27, 2011 By evossman 2 Comments

Are you going to go out and borrow a bunch of silver bars to try and sell short silver in the hopes that the price of silver per ounce will go down? That’s a little unlikely.

Instead, keeping with our theme lately of Silver ETFs, you may want to check out this offering from ProShares. It’s ZSL and it’s their Ultra Short Silver ETF. Now Ultra Short ETFs, for those that don’t know, are ETFs that look to do double the opposite of what the underlying is, in this case silver. Or, straight from the ProShares description.

ProShares UltraShort Silver (the Fund) seeks daily investment results that correspond to twice (200%) the inverse (opposite) of the daily performance of silver bullion as measured by the United States dollar fixing price for delivery in London.

That means, $1 down in the price per ounce of silver, and $2 up in the price of ZSL ProShares Ultra Short.

For those precious metals bears out there that think the price of silver and gold and other metals will certainly fall from the historic rise that is going on, can now put their money where their mouth is. This is the perfect way to maybe offset some of those silver bars you have laying around…

Filed Under: Silver ETF, Silver Investing Tagged With: ZSL

Silver Mining ETF Investment with SIL

January 26, 2011 By evossman Leave a Comment

Silver has been in the news along with gold and other precious metals as solid investment opportunities amidst all the market turmoil that we continue to see with the NASDAQ, NYSE and more. In addition to that, inflationary pressure is causing investors to jump out of the dollar and other currencies and into the old standbys.

We recently wrote about the price of silver through the new year and saw that current pull back may be good for the long term outlook, that some are pegging at near double the current price of silver. One way we looked at and suggest as a good way to get into buying silver is by looking at the silver ETF SLV. That’s a good way to own silver straight up.

But what if you want to get into mining stocks. Which one do you choose?

Well, ETFs to the rescue again and the silver ETF NYSE:SIL is a great way to keep a little of your portfolio invested in the companies that serve to profit a lot if the price of silver does in fact double by the year end.

Now we’re not sure if that will be the case, but as the world looks to find a stable place to put it’s money, SIL may be the way to go.

Filed Under: Silver ETF, Silver Investing Tagged With: SIL

Tough Day for SLV, Tough Day for Stocks

August 30, 2010 By evossman Leave a Comment

Equities, Commodities, and yes, even precious metals went through a beating these last few weeks and ETFs like NYSE:SLV was no exception. The silver ETF was down today on a day that the DOW droped 140 points, the S&P 15 and the NASDAQ 33. It was truly a tough day to be an investor today, even in the economic downturn safe precious metals like gold and silver.

These metals have usually been a safe haven for those looking to invest outside of the equities and exchange markets that have been on a roller coaster after breaking 10,000 on the DOW early this summer. No one can quite tell where the market will go and that even goes for these types investments.

Although we’re still bullish on silver and other precious metals (yes even gold which has been up way too much even for our taste), this pull back of the market could spell a september just like every other september lately. For those that don’t know, September has historically been a pullback month and a month of crashes (although I’m sure someone can dig up info contrary to that) it’s what we’ve observed lately. Maybe it’s a back to school pullback.

All those parents realize how much education costs and taking money out of equities seems like a good idea. Well if silver follows suit, you may find some buying opportunities in there.

Filed Under: Silver ETF, Silver Investing Tagged With: SLV

iShares SLV Resisting Downward Trend

June 1, 2010 By evossman 1 Comment

iShares ETF NYSE:SLV is resisting movement backwards, as silver and gold march forwards and upwards along with the rest of the global economy.

There hasn’t been any horrible news lately out of Europe, Korea, or the US, aside of course from that devastating oil spill in the Gulf of Mexico. However, the world economy is on pins and needles as new news of the status of Greece and the rest of Europe hasn’t come to light yet.

Another thing that one would think would have had an impact on the market of precious medals is the fact that Canada, a G7 nation, has raised its target of the overnight rate. Now that could signal a stronger economy which usually means a stronger currency and money flowing out of the precious metals markets. Or it could mean that inflation is finally catching up this economy and there is a need to try a curb it before it gets out of hand.

Either way, the price of silver along with SLV is up today in trading with SLV resisting the 18 mark and hovering around 18.10.

Filed Under: Silver ETF Tagged With: SLV

iShares SLV Silver Trust Moving Higher

May 27, 2010 By evossman Leave a Comment

Investing in precious metals has always been a way to hedge against the woes of the US economy and inflation, especially in turbulent economic times like these. Well many of you know, the iShares silver trust has been the easiest way to do this by buying into the ETF which holds silver reserves for the market cap it sits at.

Well, today and yesterday the price of NYSE:SLV broke through it’s 50 day moving average of 17.60 to sit right now in mid-day trading at just over 18. That’s a big move for the precious metals market which has been out of luck lately as some groups around the world are dumping their gold and silver reserves.

But don’t worry, just as much as those groups are dumping their reserves, groups like SLV trusts are buying up these reserves which has offered some resistance to huge price decreases, so we think.

Filed Under: Buying Silver, Silver ETF Tagged With: SLV

Silver Reaching New Highs

May 17, 2010 By evossman 1 Comment

The previous metal market is enjoying all the volatility in the equities markets around the world lately. With all eyes on the Euro decline, what’s happening in Greece, and if Asian markets are to follow this world-wide downward trend, metals like gold and silver are enjoying the ride.

After large upswings in the price per ounce of silver early last year, the price of silver has cooled down, until recently. Silver is now touching all-time highs again with the price per ounce nearing the $19 mark. ETFs like NYSE:SLV are reaching new highs with volume on that fund seeing larger than normal spikes.

Mining stocks, which have been a bit boring as of late, have also seen upswings in their prices, although with no real reason for such a turn. Investors are looking to put their money in more traditionally safe vehicles like silver trusts and silver bars and that is just where things look like they’re headed.

Filed Under: Silver ETF, Silver Investing, Silver Prices

Silver Prices on the Decline Q1 2010

February 4, 2010 By evossman 4 Comments

Gold and silver both have been hit hard. The dollar, in a surprising move is on the way up? Banks are paying back their TARP “loans” and the global economy is questionable. Maybe all that money that the government printed isn’t going to suck the dollar into oblivion.

China isn’t giving the bullish reports (although the china bulls are calling for amazing growth over the past 2 years) there is a slow down on the horizon it would seem. The stock market is falling backwards, the dollar is advancing and precious metals like silver and gold are falling by the wayside.

Just check out this article about SLV and GLD ETFs. They have been slammed along with the price of silver and gold. Once what was on a tear is now on the decline. So what gives?

Could it be that all the hedge funds, mutual funds, and general investing public is taken profits after a rediculous upswing that cause outrageous ratios that didn’t make sense? PE’s that made 10 years down the road, but really, willing to by GE at a PE of 30? Doubtful.

OK, so we exaggerate.

But honestly, with the worldwide economy cooling, is it wise to take your money out of precious metals? We thing not. We think it’s a perfect time to buy precious metals. Prices are retreating all over the place, because the economy isn’t as great as everyone thought it was. Who cares? Why not get in on some deals and buy silver at these reduced rates while China and India prepare for the growth they promise?

Filed Under: Silver ETF, Silver Prices Tagged With: China, GLD, India, Price of Silver, SLV