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Silver's Options Sizzle: Are Traders Betting on a Breakout?
Silver's Options Sizzle: Are Traders Betting on a Breakout?

Globe and Mail

timea day ago

  • Business
  • Globe and Mail

Silver's Options Sizzle: Are Traders Betting on a Breakout?

A notable wave of trading activity swept through several silver-linked assets in early June. Investors saw a significant jump in call option volumes for multiple silver-related equities. Call options give the holder the right, not the requirement, to buy an asset, such as a stock or ETF share, at a pre-set price by a specific date. When call volume spikes, it often signals that some traders believe the asset's price is poised to rise. This unusual call option volume and increased investor interest in multiple stocks and ETFs at the same time warrant a closer look to see what's stirring in the silver sector. Unpacking the Action: A Look at Specific Silver Plays The heightened call option volume in early June varied across multiple silver-related securities, each telling a slightly different story. Separately, they tell four stories of bullish catalysts and heightened investor sentiment, but when combined, they start to reveal the bigger picture of a sector accumulating interest and investment. iShares Silver Trust: A Price Play on Silver Bullion? [content-module:CompanyOverview|NYSE:AG] The iShares Silver Trust (NYSEARCA: SLV), an ETF that aims to track the price of silver bullion, saw 599,279 call option contracts traded. This volume was 57.8% above its usual average. The high call volume may suggest that some traders expect silver prices to rebound soon or are preparing for further price fluctuations. Because SLV tracks physical silver, this option's activity directly reflects views on the metal itself, likely influenced by broader economic news or general market coverage. First Majestic: Mining News Ignites Options Interest? [content-module:CompanyOverview|NYSE:AG] First Majestic Silver Corp. (NYSE: AG), a company focused mainly on silver production, experienced a call option volume of 39,607 contracts, an 80.9% increase from its average. First Majestic's stock price has also climbed around 18% to $7.28 during the first week of June, with a high trading volume. This mix of soaring call options, a rising stock price, and heavy trading often points to strong positive sentiment. Recent good news from the company has also likely played a role. For instance, on May 28, 2025, First Majestic announced a significant gold-silver discovery at its Santa Elena property. This, along with strong financial results from the first quarter of 2025, could lead traders to expect more gains from the stock. Pan American Silver: Big Deal Draws Options Traders? [content-module:CompanyOverview|NYSEARCA:SILJ] Pan American Silver Corp. (NYSE: PAAS), a large, diversified silver producer, recorded 9,098 call option contracts traded, up 25.7% from its average. The company's stock price also rose, gaining nearly 10% in early June. This increased call activity, alongside positive news indicators, suggests investors are reacting well to recent company moves. A key factor is likely Pan American's May 11, 2025, announcement of a deal to acquire MAG Silver Corp. for $2.1 billion. This strategic acquisition is expected to significantly boost Pan American's silver output and potential future earnings, which could, in turn, lift its stock price and attract optimistic options bets. Junior Miners: High Hopes for Smaller Players? [content-module:CompanyOverview|NYSEARCA:SILJ] The Amplify Junior Silver Miners ETF (NYSEARCA: SILJ), which holds smaller silver mining and exploration companies, saw its call option volume hit 14,925 contracts. This was a striking 97.7% leap above its average, and it was also the most significant percentage increase among these assets. SILJ's price also increased by around 10% in early June. This dramatic percentage jump in calls for SILJ points to strong speculative interest in this part of the silver market. Junior miners often have stock prices that move more sharply with silver prices. The high option activity here suggests that some traders may be betting on substantial returns from these smaller firms if silver prices continue to climb or if positive news persists for the sector. Beyond Options: What This Means for the Silver Market When call option volume rises sharply across different types of silver assets, it can signal a broader increase in investor focus on the entire silver sector. Some traders may be positioning for potential price gains. Silver's appeal comes from several areas. Demand from industries utilizing silver in green technologies, such as solar panels, electronics and the automotive sector, remains strong. Silver is also a well-known precious metal. It is often regarded as a valuable investment that retains its value, especially during economic uncertainty or rising inflation. These core factors continue to support interest in the metal. What Spiking Call Volumes Say About Silver's Next Move The notable surge in call option activity across our four assets in early June clearly shows heightened investor focus on the silver sector. This flurry of bullish bets, reflected in the increased demand for call options, suggests that a market segment is positioning for potential upward price movements in silver bullion and mining equities. Whether driven by specific company news or broader shifts in sentiment towards precious metals, the data points to a renewed speculative interest. The significant percentage increase in call volume underscores a willingness among some traders to embrace higher-risk, potentially higher-reward scenarios within the silver space. Ultimately, this concentrated options activity serves as a strong indicator that silver and its related securities captured significant market attention. At the same time, the direct motivations behind each trade can vary, the collective signal points towards a period of dynamic interest and re-evaluation for the silver complex. How these expectations play out will depend on ongoing market fundamentals, company performance, and the broader economic landscape, ensuring that the silver narrative will remain one to watch. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

Silver's Options Sizzle: Are Traders Betting on a Breakout?
Silver's Options Sizzle: Are Traders Betting on a Breakout?

Entrepreneur

time2 days ago

  • Business
  • Entrepreneur

Silver's Options Sizzle: Are Traders Betting on a Breakout?

An unusual surge in call options in early June suggests heightened investor optimism and speculative interest across multiple silver-related stocks and ETFs. This story originally appeared on MarketBeat A notable wave of trading activity swept through several silver-linked assets in early June. Investors saw a significant jump in call option volumes for multiple silver-related equities. Call options give the holder the right, not the requirement, to buy an asset, such as a stock or ETF share, at a pre-set price by a specific date. When call volume spikes, it often signals that some traders believe the asset's price is poised to rise. This unusual call option volume and increased investor interest in multiple stocks and ETFs at the same time warrant a closer look to see what's stirring in the silver sector. Unpacking the Action: A Look at Specific Silver Plays The heightened call option volume in early June varied across multiple silver-related securities, each telling a slightly different story. Separately, they tell four stories of bullish catalysts and heightened investor sentiment, but when combined, they start to reveal the bigger picture of a sector accumulating interest and investment. iShares Silver Trust: A Price Play on Silver Bullion? [content-module:CompanyOverview|NYSE:AG] The iShares Silver Trust (NYSEARCA: SLV), an ETF that aims to track the price of silver bullion, saw 599,279 call option contracts traded. This volume was 57.8% above its usual average. The high call volume may suggest that some traders expect silver prices to rebound soon or are preparing for further price fluctuations. Because SLV tracks physical silver, this option's activity directly reflects views on the metal itself, likely influenced by broader economic news or general market coverage. First Majestic: Mining News Ignites Options Interest? [content-module:CompanyOverview|NYSE:AG] First Majestic Silver Corp. (NYSE: AG), a company focused mainly on silver production, experienced a call option volume of 39,607 contracts, an 80.9% increase from its average. First Majestic's stock price has also climbed around 18% to $7.28 during the first week of June, with a high trading volume. This mix of soaring call options, a rising stock price, and heavy trading often points to strong positive sentiment. Recent good news from the company has also likely played a role. For instance, on May 28, 2025, First Majestic announced a significant gold-silver discovery at its Santa Elena property. This, along with strong financial results from the first quarter of 2025, could lead traders to expect more gains from the stock. Pan American Silver: Big Deal Draws Options Traders? [content-module:CompanyOverview|NYSEARCA:SILJ] Pan American Silver Corp. (NYSE: PAAS), a large, diversified silver producer, recorded 9,098 call option contracts traded, up 25.7% from its average. The company's stock price also rose, gaining nearly 10% in early June. This increased call activity, alongside positive news indicators, suggests investors are reacting well to recent company moves. A key factor is likely Pan American's May 11, 2025, announcement of a deal to acquire MAG Silver Corp. for $2.1 billion. This strategic acquisition is expected to significantly boost Pan American's silver output and potential future earnings, which could, in turn, lift its stock price and attract optimistic options bets. Junior Miners: High Hopes for Smaller Players? [content-module:CompanyOverview|NYSEARCA:SILJ] The Amplify Junior Silver Miners ETF (NYSEARCA: SILJ), which holds smaller silver mining and exploration companies, saw its call option volume hit 14,925 contracts. This was a striking 97.7% leap above its average, and it was also the most significant percentage increase among these assets. SILJ's price also increased by around 10% in early June. This dramatic percentage jump in calls for SILJ points to strong speculative interest in this part of the silver market. Junior miners often have stock prices that move more sharply with silver prices. The high option activity here suggests that some traders may be betting on substantial returns from these smaller firms if silver prices continue to climb or if positive news persists for the sector. Beyond Options: What This Means for the Silver Market When call option volume rises sharply across different types of silver assets, it can signal a broader increase in investor focus on the entire silver sector. Some traders may be positioning for potential price gains. Silver's appeal comes from several areas. Demand from industries utilizing silver in green technologies, such as solar panels, electronics and the automotive sector, remains strong. Silver is also a well-known precious metal. It is often regarded as a valuable investment that retains its value, especially during economic uncertainty or rising inflation. These core factors continue to support interest in the metal. What Spiking Call Volumes Say About Silver's Next Move The notable surge in call option activity across our four assets in early June clearly shows heightened investor focus on the silver sector. This flurry of bullish bets, reflected in the increased demand for call options, suggests that a market segment is positioning for potential upward price movements in silver bullion and mining equities. Whether driven by specific company news or broader shifts in sentiment towards precious metals, the data points to a renewed speculative interest. The significant percentage increase in call volume underscores a willingness among some traders to embrace higher-risk, potentially higher-reward scenarios within the silver space. Ultimately, this concentrated options activity serves as a strong indicator that silver and its related securities captured significant market attention. At the same time, the direct motivations behind each trade can vary, the collective signal points towards a period of dynamic interest and re-evaluation for the silver complex. How these expectations play out will depend on ongoing market fundamentals, company performance, and the broader economic landscape, ensuring that the silver narrative will remain one to watch. Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now... See The Five Stocks Here

Chasing Record Gold Prices? Don't Forget Silver: Why it's a Buy
Chasing Record Gold Prices? Don't Forget Silver: Why it's a Buy

Yahoo

time3 days ago

  • Business
  • Yahoo

Chasing Record Gold Prices? Don't Forget Silver: Why it's a Buy

Though silver has a larger market cap than many Fortune 500 companies and even some 'Magnificent 7' companies like Tesla (TSLA), the shiny metal has taken a backseat to gold. While silver is more commonly mined than gold, gold's price per ounce makes it a far more valuable asset than gold. Gold is the largest asset class in the world, with a market cap north of $22 trillion, while silver has a market cap of just ~$1.5 trillion. In addition to its gargantuan market cap, gold is stealing the spotlight from silver of late due to its significant price outperformance. The SPDR Gold Trust ETF (GLD) is up a robust 41.81% over the past twelve months, while the iShares Silver Trust (SLV) lags and is up 18.01%. Nevertheless, below are five reasons silver may play catchup: While gold has printed new all-time highs several times in 2025, silver finally broke out on Thursday to 13-year highs. As the old Wall Street adage goes, 'The longer the base, the higher in space.' Adding Fibonacci extensions to Thursday morning's breakouts suggests that $39 and $45 an ounce are reasonable targets for silver if this breakout is to stick. Furthermore, volume on the SLV ETF swelled to more than 2x the norm intraday, confirming the breakout. Image Source: TradingView Though gold and silver aren't perfectly correlated, they tend to trade in tandem. Recently, the gold-to-silver ratio reached an extreme. Historically, gold has made the first move higher, and silver has played catchup. In addition, gold fell more than 1% intraday while silver rose more than 2% - signaling a clear bullish change of character for silver. The Congressional Budget Office (CBO) predicts that 'The Big Beautiful Bill,' backed by President Donald Trump, will add $2.4 trillion to primary deficits and $3 trillion to debt (accounting for interest) if passed. Regardless of what side of the aisle you stand with politically, it's hard to argue that Republicans or Democrats have been fiscally responsible. For perspective, it took 221 years for the US debt to reach $12 trillion. Then, from 2020-2024, the US added another $12 trillion in debt. Investors use silver as a hedge against rampant government spending, tariff uncertainty, and inflation. The AI revolution is in full swing as mega-cap tech juggernauts dole out billions in CAPEX to build energy-hungry data centers across the globe. Silver is a necessary ingredient for the AI boom and is used in expensive GPUs from Nvidia (NVDA) and other chip companies that train large language models (LLMs). In addition, some analysts predict that AI data centers could consume ~12% of all American energy output by 2028 (up from 4% in 2023). The US may have to turn to renewable energy sources and companies like First Solar (FSLR) to fill the void. Once again, silver is a necessary ingredient needed to produce solar panels. Analysts tracked by Zacks Investment Research have high hopes for silver miners like First Majestic Silver (AG). The silver mining industry ranks 13 out of the 244 industries tracked by Zacks, making it a top 5% group. Image Source: Zacks Investment Research Bottom Line While gold holds the precious metals spotlight with its impressive market cap and recent price surge, silver appears poised for a significant resurgence. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Solar, Inc. (FSLR) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report SPDR Gold Shares (GLD): ETF Research Reports iShares Silver Trust (SLV): ETF Research Reports First Majestic Silver Corp. (AG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

"Safe Haven": Calls for mass buying and expectations that silver will break the $100 barrier.
"Safe Haven": Calls for mass buying and expectations that silver will break the $100 barrier.

See - Sada Elbalad

time30-03-2025

  • Business
  • See - Sada Elbalad

"Safe Haven": Calls for mass buying and expectations that silver will break the $100 barrier.

Waleed Farouk Silver prices rose in local markets by 2.3% during last week's trading, with the ounce on the global stock exchange rising by 3%, amid geopolitical and economic uncertainty, according to a report by the Safe Haven Hub. The report indicated that silver prices in local markets rose by one Egyptian pound during last week's trading, with the price of a gram of 800-karat silver opening at 44 Egyptian pounds and closing at 45 Egyptian pounds. Meanwhile, the price of an ounce on the global stock exchange fell by one dollar, opening at $33 and closing at $34. It added that the price of a gram of 999-karat silver reached 56 Egyptian pounds, while the price of a gram of 925-karat silver reached approximately 52 Egyptian pounds, while the silver pound (925-karat) reached 416 Egyptian pounds. Silver reached a five-month high but fell back to around $34 by the close of trading on Friday, reaching $34.58 per ounce before retreating as investors took profits. The metal then surpassed $34.23, its all-time high from March 18. Silver Rally Silver remains the only major metal still trading below its all-time high of 1980, reinforcing speculation that prices are being manipulated and remain low, even as traditional catalysts such as rising inflation, increased physical demand, a supply deficit, and a massive surge in gold prices combine to support silver as well as gold. Silver has once again become the focus of a coordinated grassroots movement, this time dubbed "Silver Squeeze 2." This online campaign, which has gained widespread attention across social media platforms such as X, calls for a mass purchase of silver on March 31 to challenge what proponents describe as a "rigged" paper market. This strategy is reminiscent of the 2021 Reddit silver squeeze. Reports indicate that trade tariffs would naturally drive up silver prices, especially given the surge in demand for silver, as large quantities of silver flow into New York from London. The stock market's hold on silver prices is almost impossible to overstate. The futures market is currently experiencing a net supply shortage of approximately 223 million ounces, representing approximately 25% of annual mine supply. Meanwhile, the ratio of paper silver to physical silver is approximately 378 to one, far exceeding any other futures market for any metal or commodity. In 2021, retail investors attempted a similar move, with SLV ETF trading volumes increasing ninefold. Silver briefly jumped from $25 to $29.50, and the average price of silver rose 30 to 40% in just three days. Silver has a sustained industrial demand, creating a deficit in the markets, alongside investment demand from individuals and institutions, confirming a sustained price increase like gold. The amount of silver available for investment is now less than it was 10 years ago, and this could contribute to a greater and more sustained pressure. Industrial demand for silver now represents about 60% of annual usage, up from 50% a decade ago. According to the Silver Institute, solar power, electronics, and electric vehicles have contributed to this increase. Silver has been in a global supply deficit for four consecutive years, averaging 200 million ounces annually, according to Metals Focus. This deficit has not been offset by new mine supply, but rather by stockpiling from exchanges like the London Bullion Market Association (LBMA) and COMEX. LBMA stockpiles have fallen by 40 to 50% over the past few years, and much of this metal is being moved to private vaults in New York. With growing calls for mass buying, silver is expected to hit $50, amid expectations that it will continue to break records and soon reach $100. Trump Threats and Fed Warning While President Trump's plans for tit-for-tat tariffs, scheduled to take effect on April 2, are widely expected to lead to higher import prices, economists estimate that the impact on inflation could exceed a full percentage point. While some Federal Reserve officials expect a temporary increase, others warn of prolonged pressure, increasing uncertainty about the fate of interest rates. Trump's tariff threats could add 1% to inflation, raising concerns that could push silver demand higher. The Federal Reserve continues to face mixed signals, including moderate growth, strong consumer spending, and rising inflation expectations. While recent CPI figures have indicated slowing price growth, the outlook for personal consumption expenditures suggests the Fed has limited room to ease monetary policy. Federal Reserve spokespeople have described economic conditions as faltering, with the outlook clouded by policy risks and weak consumer confidence. The U.S. Commerce Department reported Friday that the core personal consumption expenditures (PCE) index, which excludes volatile goods and energy prices and is the Fed's preferred inflation measure, rose 0.4% last month, compared to January's 0.3% increase. Consumer prices were higher than expected, with economists forecasting another 0.3% increase. Over the past 12 months, core inflation rose by 2.8%, compared to a revised 2.7% increase in January. Economists had expected an annual increase of 2.7%. 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