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SLV’s Trade Volume Spiked in the Beginning of April.

In Investment Returns on April 17, 2011 by CQCA

This month SLV saw a spike in trade volume. That means more investors are hoping to get on the bandwagon and the current holders are cashing out. If anyone bought silver between 2006 and 2009, they are up about 200%.

However, instead of being a simple matter of some investors cashing out and some hoping to continue on the upside, SLV trades may reflect precious metals investors’ views on longterm monetary policy. The last spike in the graph shown above was the week of November 2nd through the 8th, 2010. That is the same week the Federal Reserve announced it “[I]ntends to purchase a further $600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month.”

Will we see QE3? Silver investors think we will.

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