iShares Silver Trust (NYSE: SLV ) - At the beginning of January, I cautioned , "Precious metals have led most other groups with SLV advancing almost 70% in four months. The uptrend line is now so steep that it will be difficult to maintain, and a penetration on profit-taking is to be expected."
At that time, I recommended that traders who owned this exchange-traded fund (ETF) sell at least part of their position due to the "strong likelihood of a correction."
SLV was at about $29 then, but instead of pulling back, it launched to a new high at over $36. Now at $35.30, it is picking up buyers again, and last year's relationship of a bearish dollar versus bullish precious metals appears to be gaining momentum.
It is time to buy silver again with the expectation that it will break to a new high with a trading objective of $40-plus.
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