SLAM Exploration Ltd. (TSXV: SXL)
‘Exploring for critical elements and precious metals in New Brunswick, Canada.’
The price of silver hit an all-time high of more than $121 per ounce in January and has not come close to that level since. On Tuesday, silver traded at about $63, only about half of its peak level. Although silver prices have pulled back this year, multiple catalysts exist in the market that could drive the precious metal higher in the coming weeks and months. The iShares Silver Trust (SLV) tracks the price of silver and may be a good choice for investors looking to diversify their portfolios. Like silver itself, the ETF has declined in value this year but is still up about 47% over the past 12 months. If silver ultimately continues to rise as one top bank believes it will, this exchange-traded fund may be worth buying right now.
Silver has moved sideways in recent weeks, but Citigroup analysts believe the price could rise to $75 in the short term and to around $90 over the next six to twelve months. Although a return to its all-time high is not included in their forecast, silver has demonstrated extreme volatility in the past, so there is a possibility that it could break through those target prices when market enthusiasm builds. Citigroup also acknowledges that it expects silver to be more volatile than gold. As precious metals may become a more attractive option for investors in the near future, silver may have more upside potential than gold. The bank believes that precious metals could return to the spotlight for investors against the backdrop of a potentially less hawkish Federal Reserve. Citigroup also expects tensions in the Middle East to ease, and if oil prices fall as a result, investors may withdraw from oil and natural gas stocks that have risen sharply this year and rotate back into silver.
Although silver has not moved much in recent months, its value could rise in the near future, and once a rally begins, its past behavior has shown that the move could be both sudden and significant. With many stocks trading at high valuations, buying the iShares Silver Trust, which has fallen 17% this year, may be a good move for investors, providing not only exposure to silver but also a potential tool to hedge against market uncertainty.
Silver prices have fallen sharply after hitting an all-time high in January and are currently about half of their peak level. Despite weak performance this year, Citigroup predicts that silver prices could rise to $75 in the short term and reach $90 within six to twelve months. Against the backdrop of a potentially more dovish Federal Reserve policy, expectations of easing tensions in the Middle East, and a potential decline in oil prices, precious metals may regain favor with investors, and silver’s volatility and upside potential may even exceed those of gold. For investors looking to diversify their portfolios and hedge against market uncertainty, the iShares Silver Trust (SLV), which tracks the price of silver, is worth watching at current levels.
