The recent recovery of Shares Silver Trust (SLV) slowed down in the last several days. This ETF only inched up by 0.2% during last week. The weakness in U.S. equities, the fall in U.S. dollar and the rise in demand for U.S. long term treasuries provided the fuel to keep pushing up SLV. But is this rally about to change course?
U.S. equities didn’t do well in recent weeks even after considering their rally at the end of last week. Up to the middle of last month, U.S. equities did well, which coincided with the weakness of SLV.
As you can see in the chart above, S&P500 index plummeted in the last few weeks. Even though SLV bounced back during that time frame, the price of this ETF didn’t spike. Moreover, gold has outperformed silver – the gold to silver ratio reached 71.5 by the end of last, which is the highest ratio between the two precious metals. Besides the weakness in U.S. equities, the U.S. dollar also didn’t do well.
For the rest of the report you can see it at Seeking Alpha
For more see:
- Is Silver Wheaton Still a Buy?
- 3 Reasons to Prefer Silver Wheaton
- Silver Wheaton Is Not Solely Impacted By Silver
- Examining the Relation between Gold and Inflation