iShares Silver Trust
) - This exchange-traded fund (ETF) is intended to constitute a
simple and cost-effective means of owning silver since the trust
holds physical silver bullion. The objective of this investment
is to reflect the price of silver owned by the trust less the
trust's expenses and liabilities.
I first recommended SLV in November 2009, at $18.50. On Nov.
8, 2010, at $25, the
Trade of the Day
said, "The trust has had straight-line appreciation since
September 2010, so buyers should use caution at current levels.
But if silver bullion continues to rise and inflation rears its
head, SLV could see much higher prices. Buying a half position
now and a full position later might prove to be a wise
Silver is still advancing, and at over $30, SLV appears
to be headed even higher. Positions may still be bought, but
placing a trailing stop-loss order at 10% under the market is
advised since the angle of advance has become very steep, which
increases the risk of a correction.
If you have questions or comments for Sam Collins, please
e-mail him at