According to many technical analysts, it is significant that all precious metals are trading higher than their 200-day moving average today. Of course, only an even greater increase over an even longer period of time can provide certainty about the formation of a solid technical basis; But it is certain that the trend in question is worth following.
According to EFT Securities Ltd. (EFTS), silver's growth margin is currently larger than gold's this year, at 12% versus 10%. This trend has been going on since 2000: in the months that the gold price rises, the silver price also rises, with an increase that is 1.4 times as high as the increase in the gold price. Only 2013 showed a 'dip' in this respect. At that time, the growth margins of silver were only 1.3 times greater than those of gold.
These percentages may explain why investors are building their positions around silver ETFs this year. The number of silver ETF holdings is already up 0.5% this year at 625 million ounces traded. In comparison, compared to this time last year, the number of gold ETF holdings is down 1.5% today (although it should also be noted that there have been more inflows recently).
But still: the number of silver ETFs is reaching its highest point today, namely that of October 2013. It's now only 3% away from that, compared to a 34% drop in gold ETFs. Although this also implies that the (rise in the) silver price is vulnerable; the purchase of more silver ETPs seems likely, especially as long as the silver price maintains its strength.
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