What Silver (SLV) Needs Most

silver investing chart
Written by Mike Hammer

Now that the impact of the US-Iran situation is apparently absorbed by the financial community, we can look at its effects on silver and see if they tell us anything.

And they sure do.  Here’s a very simple 3-month chart of SLV, the unleveraged US silver ETF that trades on US markets.

slv silver ishares(credit Fidelity.com)

If we look at the relationship between the US Dollar index UUP (blue line) and SLV (the candlesticks), we can see that most of the time they trade in “good inverse relation” to each other.  Meaning over 2 or 3 days, a move in one is mirrored by an opposite move by the other.  Sure, there are single days where both go up, or both go down. But in general, they follow the common rule of precious metals trading inversely to the local currency.

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as continuing themes. Mike graduated with a business degree and spent years as a financial advisor, before moving to New York and to pursue a career in IT and education. For more than a decade Mike has been working with the Adam Mesh Trading Group as a stock market and commodities mentor. He’s trained over 200 individuals, spoken at several national conventions, and is a frequent contributor to educational webinars.

Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keeps him in touch with "the student mindset".

Mike focuses on the precious metals markets, the energy industry, and the financial sector. His motto is "Plan your trade, then trade your plan!"

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