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The moves in gold and silver have been getting crazy lately as the price charts of both precious (and getting more precious by the day) metals have turned parabolic in recent weeks. Through yesterday’s close, the SPDR Gold ETF (GLD) is already up over 20% YTD, while the iShares Silver ETF (SLV) has surged an unbelievable 62%. In normal times, these type of gains would be considered a great year!
The moves in GLD and SLV have left them extremely extended. GLD closed 38% above its 200-DMA yesterday, and SLV finished the session 137% above its 200-DMA. 137%!
What makes the recent moves in both metals ETFs even crazier, though, is how persistent the gains have been. Through yesterday’s close, GLD traded more than 1% higher for six straight sessions. Before the current streak, the longest streak in the ETF’s existence since 2004 was only four days.
SLV’s streak of 1% daily moves has only been four trading days, and for a volatile commodity like silver, that’s peanuts. The current streak (through yesterday’s close) was actually the third four-day streak of 1%+ daily gains in the last two months! Since the ETF’s inception in late 2006, there have been several other four-day streaks, as well as a five-day streak that ended in 2020 and a seven-day streak ending in April 2011.
Silver (SLV) hasn’t just rallied 1%+ for four straight days, but rather 3%+ for four straight days. In SLV’s entire history, there was only one other streak that even lasted three trading days. If you own either of these ETFs or stocks exposed to them, it’s been a great ride, but just keep in mind that moves like these don’t last forever, and even if the ultimate peak for either metal is still on the horizon, the ride there won’t be smooth.
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