The iShares Silver Trust (NYSE:SLV) is trading just shy of its all-time high Wednesday morning as spot silver trades above $110 an ounce after smashing fresh records earlier in the week.
The ETF, which holds physical bullion, has gained over 55% on a year-to-date basis as investors rush into precious metals on mounting global risks.
Global Tensions And China's ‘Zombie Banks' Lift Silver
Silver's latest leg higher followed reports of capital flight from China's troubled "zombie banks," where hidden losses are driving savers toward hard assets.
At the same time, geopolitical friction is rising: Washington and Beijing are sparring over tariffs, while Canada is caught in the middle of new trade threats. Those headlines have reinforced silver's role as a crisis hedge, boosting demand for SLV as an easy way to gain exposure.
Fed Meeting And Shutdown Odds Add To Safe-Haven Bid
In the U.S., investors face the prospect of another federal government shutdown at month-end and an upcoming Federal Reserve meeting clouded by political pressure on Fed Chair Jerome Powell.
With policy uncertainty high and risk assets already stretched, some traders are rotating into SLV as a perceived safer parking spot for capital.
Why SLV's Surge Matters For Long-Term Investors
Silver has a long history as both money and an industrial metal used in solar panels, electronics and medical devices. That dual role means SLV can benefit when investors seek a store of value.
But past spikes, such as the Hunt brothers squeeze in 1980 and the post-crisis surge in 2011, were followed by steep reversals, underscoring that recent, marked gains in SLV come with elevated volatility risk.
SLV Enters Overbought Territory
The ETF is trading 30.7% above its 20-day simple moving average (SMA) and 93.4% above its 100-day SMA, demonstrating significant strength in the longer term. Over the past 12 months, shares have increased 271.81% and are currently positioned closer to their 52-week highs than lows.
The RSI is at 80.99, indicating that the stock is in overbought territory, while the MACD is above its signal line, suggesting bullish momentum. The combination of overbought RSI and bullish MACD indicates a potential for price corrections in the near term.
SLV Edges Higher Wednesday
SLV Price Action: iShares Silver Trust shares were up 1.72% at $103.30 at the time of publication on Wednesday, according to Benzinga Pro data.
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