At around $20 an ounce, this was the equivalent of almost $60 million in silver being added to the trust two days ago as prices posted a modest rebound. Then, yesterday, holdings at the ETF fell by more than $100 million as all of Friday’s gains were given back (and then some), as the silver price dropped to a fresh multi-year low.
Someone or some group of traders were apparently early on their silver bottom call and didn’t stick around long after it proved to be premature.
Nonetheless, investors in the world’s most popular silver ETF remain a fairly persistent bunch. After Friday’s addition, SLV holdings climbed back up to within a tenth of one percent of the level seen at the end of last year. This came despite the silver price having tumbled 34 percent since that time.
This is quite a contrast to the world’s gold ETFs that seem to shed metal at about the same pace (or faster) than the price has been falling. For example, after the recent acceleration of outflows from the SPDR Gold Shares ETF (GLD) – an average of almost 5 tonnes per day for the last three days – the ETF’s holdings have dropped 27 percent this year while the gold price has fallen 22 percent.