To The Moon

🌟🌟🌟Spot Gold Prices have been trending upwards recently and have reached above USD 3000 mark.    Spot Silver prices have also been rising too.  In 2024, Silver prices have crossed a decade long price ceiling, surpassing USD 30 per ounce.  It is currently trading at USD 34.06 per ounce.

$iShares Silver Trust(SLV)$  provides exposure to the day to day movement of the price of Silver bullion.  It is the largest Silver ETF with a market capitalisation of USD 15.26 billion. 

Performance wise SLV is up 1.4% in the past 5 days and in just 1 month it has risen 9.4%.  SLV is now up 15% year todate and in 2024, SLV has jumped 35.5%.  In contrast $SPDR S&P 500 ETF Trust(SPY)$  is down 4.3% year todate and in 2024, SPY is only up 7%.

The Gold to Silver ratio compares the prices of the two precious metals, showing how many ounces of Silver are needed to buy 1 ounce of Gold.  As of March 19, the Gold Silver ratio is around 88.7.  This means that it takes 88.7 ounces of Silver  to buy 1 ounce of Gold.

The current low ratio of Silver suggests that Silver maybe undervalued compared to Gold.    Some analysts estimate that Silver could reach USD 50 an ounce in 2025 and by 2028, Silver could reach USD 77.00.

Silver is not only used as a safe haven asset like Gold, it also has commercial uses as well.  Today Silver is invaluable to soldering and brazing alloys, batteries, dentistry, glass coatings, LED chips, medicine, nuclear reactors, photography, photovoltaic (solar) energy, Semiconductors and many more.

The Global Silver market is currently facing a supply deficit with demand outpacing supply.  This is due to its strong industrial demand especially in sectors like solar energy and electronics. 

Mexico, Peru and China are the largest silver producers globally .  Geopolitical and economic uncertainties can also impact Silver prices. 

SLV has an expense ratio of 0.50%.    It is backed by Silver bullions held in London vaults.  Wall Street Analysts are bullish on SLV with a Buy rating, Average Target price of USD 54.18.  That is an upside potential of 74%.

I like SLV ETF as it provides me with an easy and convenient way to access Silver without having to worry about the safe keeping of holding physical silver.  It is also very easy to buy and sell SLV with just a click of a button.

SLV provides me with a portfolio diversification as it often performs in an inverse manner to traditional stocks.  SLV is also a great hedge against inflation.    Compared to $SPDR Gold Shares(GLD)$ , I believe that $iShares Silver Trust(SLV)$  has great upside potential and is a Good Buy.

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