We have been particularly bullish on the iShares Silver Trust ETF (NYSEARCA:SLV) in recent months after the massive policy from the Fed in response to the COVID-19 macro shock. In this regard, we have not been disappointed by the substantial appreciation in SLV – SLV rose as much as 120% from its mid-March low to its year YTD high established in August.

Source: Bloomberg, Research

The iShares Silver Trust ETF

SLV seeks to track the performance of silver spot prices by physically holding silver bars in England or New York.

The physically-backed methodology used by SLV prevents investors from getting hurt by the current contango structure of the COMEX silver forward curve (forward>spot) contrary to a futures contract-based methodology.

Its expense ratio is 0.50% per year.

SLV has come under renewed downward pressure since it reached its highs since April 2013 earlier this summer. In this note, we investigate whether