For investors seeking momentum, iShares Silver Trust SLV is probably on the radar. The fund just hit a 52-week high and is up 61.6% from its 52-week low price of $26.19/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
SLV in Focus
The iShares Silver Trust seeks to reflect generally the performance of the price of silver. The product charges 50 bps in annual fees (See all Precious Metals ETFs here).
Why the Move?
Silver is often considered an industrial metal, too. About half of the metal’s total demand comes from industrial applications. The industrial demand for silver is rising, especially on the green energy front. Silver’s industrial demand rose 4% in 2024, per the Silver Institute.
Silver is used in solar power and electric vehicle applications. China’s solar boom also supported silver demand, with solar cell exports jumping over 70% in the first half of the year, mainly due to sturdy shipments to India, as quoted on tradingeconomics.com.
Moreover, the Fed has already enacted a rate cut this year and is expected to slash the same more in the coming days. If the Fed cuts rates further, the U.S. dollar may lose strength. Since silver is priced in the U.S. dollar, any slump in the dollar tends to buoy the metal price.
More Gains Ahead?
SLV might continue its strong performance in the near term, with a positive weighted alpha of 58.49 (according to Barchart.com), which gives cues of a further rally.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Silver Trust (SLV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
