Top ETF Picks For 2020: iShares Silver Trust ETF (SLV)

David Dierking

Note: This is just one in a series of articles talking about my top picks for 2020. I encourage you to check out my other top picks under the "Trade Ideas" tab and look for the "Top ETF Picks For 2020" heading!

If you believe in gold for 2020, there’s no reason you shouldn’t appreciate silver even more. It doesn’t get nearly the attention that gold does among market watchers, but silver offers a deep value opportunity in addition to the precious metals upside.

After moving in lock step with silver earlier this decade, gold prices started to move up while silver mostly moved sideways, a trend that has been in place for the past four years.

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Not only do I see precious metals making a significant move up in 2020, I think silver is finally going to be closing the gap to gold as well as investors seek out value in addition to upside.

A lot will depend on what comes of the political tensions in the Middle East. Since the government strike that killed a top Iranian military commander, oil, commodities and Treasury prices have all risen sharply. While the current economic environment as it stands is favorable for a sustained move higher in precious metals, a prolonged conflict in the Middle East that chokes off supply could result in a further surge.

If the Fed's plan to let inflation run hot comes to pass with consumer spending remaining strong, it offers another catalyst for a broad pivot to safe havens.

I made the case for silver not long ago and put a $20/ounce short-term price target on it. I believe that $25 is very much in play by the end of 2020, although that should probably be considered a best case scenario.

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