With a +30% surge in the last three months—its best year since 2010—silver is turning heads. Yet, silver remains underinvested relative to gold. For context, the largest gold ETF (GLD) holds over 5x the assets of the largest silver ETF (SLV).
But here’s the catch: silver’s strength is tempting investors to chase entries.
Before jumping in, consider this: SLV’s price is currently stretched far above its 200-day moving average—a level only seen three times since 2007 (2008, 2010/11, 2020). Historically, this signals caution for new positions.
Though silver’s rally may be late-cycle, historical trends suggest further gains. Past peaks indicate SLV could reach $46–$55 before topping. Yet, caution is critical – silver’s corrections are often steep, with a median drop of 34.8% one year after prior highs.
Key takeaway: Silver still offers opportunity, but discipline is critical.
