Yesterday the gold stock GDX ETF went up over 3.99% on over 45 million shares of volume to be the number one ranked ETF in terms of volume even surpassing the SPY ETF that tracks the S&P 500. Big money is now coming into mining stocks and precious metals funds even though the masses are still asleep on what is happening.
The iShares Silver Trust ETF (NYSE: SLV) caught a big bid going up 1.87% on Tuesday on even bigger volume as three times normal daily average volume came into the exchange to trade it.
Part of the reason that this ETF went up so much though is because the price of silver caught a big bid. In fact silver closed right on its upper 200-day Bollinger Band after breaking a downtrend line that has acted as resistance on silver now since its peak of 2016.
The iShares Silver Trust ETF (NYSE: SLV) now looks like a screaming buy in my opinion.
I think anyone could buy this ETF and put a stop loss order under the lower support trend line I have drawn on this chart. That would make for stop below $13.50 for a long-term investment play.
Of course, the big cap silver stocks simply are surging now and there are huge opportunities in the small cap silver world too. The metal markets are now coming alive and big money investors and technical chart traders are taking their positions. The masses may still not care today, but once prices go up high enough to get their attention they will begin to trickle in as buyers too.
-Mike Swanson
Disclosure note – I own a position in GDX along with many mining stocks and a family member of mine owns SLV. I also recently recommended a small cap silver stock as a top seven trading position in my private Power Investor group that appears to now be ready to come alive.
