November 28, 2022

iShares Silver Trust Hits New All Time High

During Wednesday trading, the iShares Silver Trust (SLV) reached an all time high price.  At the time of this post, shares were trading up 78 cents to $36.32, which exceeds the previous high of $35.27 reached in early March.

The SLV saw a month long correction in January with the price declining from $30 to $26, which brought the SLV below its 50 day moving average.  The losses on the brief pullback in January were quickly regained and the SLV powered on to new highs by mid February.  The SLV has now jumped more than $10 from its January low, for a gain of over 38% in less than two months.

SLV - COURTESY STOCKCHARTS.COM

Ownership of the SLV gives an investor an undivided, fractional ownership in the physical silver held by the iShares Silver Trust.  The price of the SLV is structured to reflect the underlying price movement in silver.  The gain or loss on the SLV should very closely track the price of one ounce of silver. Over 97% of the Trust’s net asset value is based on physical silver held by the Trust.

The Silver Trust currently holds over 352 million ounces of silver worth $12.7 billion.   Assets of the SLV have grown steadily since the inception of the Trust in April 2006.  The SLV has become extremely popular with investors seeking to establish a position in silver without the costs and risks of taking physical possession of the metal.  Due to the manner in which the Trust is structured, premiums and discounts to the net asset value during the trading day are typically less than 1%.

Investors have seen huge returns on their investment in the iShares Silver Trust.   Last year the SLV rose 79.4%.  Year to date the SLV is up 18.6%.  Since inception of the Silver Trust in April 2006, the net asset value of the SLV has almost tripled from its initial price of  $12.55.   A $5,000 investment in the SLV in April of 2006 is now valued at $14,455.

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