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Silver ETF (SLV) Hits New 52-Week High

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For investors seeking momentum, iShares Silver Trust (SLV - Free Report) is probably on the radar. The fund just hit a 52-week high and has moved up 34% from its 52-week low of $24.25 per share. 

Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

SLV in Focus

The fund offers exposure to the day-to-day movement of the price of silver bullion. It charges 50 bps in fees per year (see: all the Precious Metals ETFs here).

Why the Move?

Silver has been an area to watch lately, given the surge in the metal’s price. Silver soared to its highest level in more than a decade, topping $35.90 per ounce — a level not seen since February 2012. The rally comes amid a weakening U.S. dollar, persistent supply deficit, heightened global trade uncertainty and rising interest in precious metals as geopolitical and economic hedges.

More Gains Ahead?

Currently, SLV has a Zacks ETF Rank #3 (Hold), with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, a weighted alpha of 25.02 and a 20-day volatility of 27.45% show that there is still some promise for risk-aggressive investors who want to ride on this surging ETF.


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