Despite Higher Demand For Silver, SLV Remains Down
Summary
The demand for silver for investment is rising, but the price of SLV continues to fall.
The physical demand for silver is expected to increase, which will increase the physical silver deficit.
The ratio of silver to gold is rising – does this mean SLV becomes a bargain?
Even though the discussion in the U.S. continues to revolve around the timing of the Fed’s next rate, which could still move the price of the iShares Silver Trust (NYSEARCA:SLV), the physical silver continues to tighten on account of rising demand. But does a deficit in the physical silver market push higher the price of SLV? Also, will the high gold-to-silver ratio – currently at 77 – suggest that silver is undervalued relative to gold and may suggest a buying opportunity?
Silver is a precious metal that is very attractive to investors for various reasons. Silver has historically increased in value as gold has, however it can be purchased at a much lower cost than gold.