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(Kitco News) - The SLV silver ETF showed its heaviest investor inflows since the Reddit induced silver squeeze ramp of late-January last year. A jump in demand for new shares however saw the world's largest silver-backed ETF end the day needing an extra 281 tonnes of bullion to back its value.
While reversing all of the SLV's outflows so far in 2022, Monday's inflow was a fraction of the 1,766 tonnes added on 2 February 2021, a record which capped a 3-day expansion of 19.3% in the SLV's shares in issue after the aforementioned WallStreetBets short-squeeze.
"There [had] been much larger participation from non-Western players in silver," says a trading note from Swiss refining and finance group MKS Pamp, "helping to drive its outperformance" relative to gold so far in 2022.
Last week's peak in Shanghai silver prices "through the psychological 5,000 CNH/kg level [was] injecting further momentum buying," MKS goes on, noting that premiums for silver landed in China versus London had risen to 13 cents per ounce.
Looking at the daily chart of the iShares Silver ETF (SLV) below there has been a break of a key trendline. The price has conclusively moved away from the $20.00 area and a jump in volume has been noted which shows there has been some backing behind this move. The next key resistance is now at the previous wave high at $23.40 per share.