Despite all the ink and air time given to its “bugs”, the precious metals market has had a paint-dryingly dull 2 years with gold and silver stuck in a relatively tight range. At the moment, though, silver bugs might be pining for a “home” in that range still. That’s because, after breaking its post-2008 Up trendline last month, the metal, as represented by the iShares Silver Trust (SLV), is now breaking below its 2-year low set just about a year ago.
Obviously, dropping below that 2-year low, set in July 2017 near 14.50, is a dubious milestone that silver bulls would prefer not to see. It is reality, though, as today’s closing price on the SLV was 14.42. Absent an immediate recovery, this potential lack of support also paves the way for still lower prices in the SLV – and a possibility of a test of its 2015-2016 decade lows near 13.
So is there any hope for the metal – or is it destined for further dubious milestones? In a Premium Post at The Lyons Share, we take a more comprehensive (and interesting) look at the silver market to assess the odds of a turnaround.
If you are interested in our Premium level charts and analysis, check out The Lyons Share. You can also follow our investment process and posture every day — including insights into what we’re looking to buy and sell and when. Thanks for reading!
Disclaimer: JLFMI’s actual investment decisions are based on our proprietary models. The conclusions based on the study in this letter may or may not be consistent with JLFMI’s actual investment posture at any given time. Additionally, the commentary provided here is for informational purposes only and should not be taken as a recommendation to invest in any specific securities or according to any specific methodologies. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.
The iShares Silver Trust ETF (SLV) closed at $14.59 on Friday, up $0.17 (+1.18%). Year-to-date, SLV has declined -8.76%, versus a 5.22% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Dana Lyons, JLFMI and My401kPro.