Friday, April 8, 2011

iShares Silver Trust (SLV) Holds Record Bullion

iShares Silver Trust (NYSEArca:SLV) had its silver bullion holdings reach record levels, as silver surged past the $40 an ounce mark to another 31-year high.

James Moore at FastMarkets.com wrote, “While the rebound in economic activity has been behind the move, much of the driving force behind silver’s success has been the influx of investment buying as both individual and institutional level players seek as cheaper alternative to gold. In addition to demand for coins and bars, investment flows into the various exchange traded fund (ETF) platforms remain strong.”

Even so, Moore did say there is a risk of another correction, especially if the U.S. dollar were to regain some of its strength. “Given the gains posted by gold and silver there is the risk of a sharp correction, particularly if the dollar were to recoup some of its weakness,” Moore said.

Based on the U.S. dollar and the practices of the Federal Reserve of endlessly printing money, there is little chance over the long term the U.S. dollar will change direction, other than in temporary spurts.

The amount of silver bullion now held by iShares Silver Trust has reached almost 360 million ounces.

iShares Silver Trust was trading at $39.47, gaining $0.74, or 1.91 percent, as of 11:23 AM EDT.

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