Silver ETFs Attempting To Break Out In 2015

As one of the more price sensitive areas of the precious metals market, the iShares Silver Trust SLV dropped precipitously in 2013 and 2014. Over that two-year time frame, SLV fell 48.72 percent as demand for precious metals waned.

In a bid to reverse those fortunes, SLV has jumped out of the gate with a quick gain of over 8 percent to start 2015.

iShares Silver Trust

This well-known exchange traded fund tracks the daily spot price of silver bullion using a vault-style mechanism to accumulate and dispense actual physical silver. SLV has total assets of over $5.4 billion and charges an expense ratio of 0.50 percent.

A look at a chart of SLV shows how the price of this fund is re-testing its December high and may be attempting to break out above this key resistance point.

A successful breakout at these levels may attract more precious metals investors that have been looking for positive momentum to build in the commodity space before deciding to enter.

Related Link: Sterne Agee Bullish On Gold And Silver

Global X Silver Miners ETF

The Global X Silver Miners SIL has been building similar relative strength since the beginning of the year. SIL tracks 27 global companies engaged in silver exploration, mining and production. The top holding in SIL is Silver Wheaton Corp. (USA) SLW, which is an industry-leader in silver mining efforts.

This ETF has over $200 million in total assets and charges an expense ratio of 0.65 percent. Since the start of 2015, SIL has gained over 12 percent and appears to be showing more aggressive price action relative to SLV.

Investors in precious metals may be banking on a decline in the U.S. dollar or a possible return of inflation as two fundamental drivers of accumulation. In addition, the appeal of a physical asset can often act as a safe haven during times of uncertainty or stress in the global markets.