By Roberto PedoneWINDERMERE, Florida ( Stockpickr) -- For whatever reason, market pundits and commentators seem to always focus on gold when it comes to the precious metals market. I am guilty of this myself, considering that I just penned a piece about a number of gold plays that could be setting up to make some big moves. While it's true that right now the price action in gold is acting very bullish, the price action in two other precious metals -- palladium and silver -- is on fire as well. Just take a look at the performance of the ETFS Physical Palladium Shares ( PALL - Get Report) and the ETFS Physical Silver Shares ETF ( SIVR - Get Report) over the last six months. The PALL has advanced more than 16% and the SIVR has traded up 17%. In fact, both of these ETFs are outperforming the SPDR Gold Trust ETF ( GLD - Get Report), which is up a little more than 10% in the last six months. So what is driving the moves in palladium and silver? It looks like Palladium is seeing strong demand due to a pickup in industrial production. Palladium is used heavily in the automotive industry along with platinum, which is represented by the ETFS Physical Platinum Shares ( PPLT - Get Report). Recently, Bloomberg.com reported that auto sales in Russia are set to advance by 13% in 2010 to 1.7 million vehicles. This is just one example that automobile demand is picking up in certain parts of the emerging world. Strong demand for platinum and palladium can also be seen in the jewelry market and just simply as an investment allocation choice among retail trades and institutional trend traders. Silver is also in heavy demand from the industrial sector, especially from the solar-panel makers. Plus, silver is following gold higher in the fear trade. Some market players think that silver and gold have in a way become the new reserve currencies around the globe. Both metals have very liquid markets that central banks around the world can move in and out of rapidly. Here's a look at a number of silver and palladium stocks and ETFs that could be setting up to make some big moves. Two ways to play the silver market that look very compelling are the iShares Silver Trust ETF ( SLV - Get Report) and the aforementioned ETFS Physical Silver Shares ETF. The iShares Silver Trust ETF is a grantor trust that's objective is to, at any given time, reflect the price of silver owned by the trust less the trust's expenses and liabilities. This silver ETF saw a gigantic volume up move on Wednesday, when more than 15 million shares traded hands, compared with the three-month average daily volume of around 7.5 million shares. The stock finished the heavy volume day up around 3%. Market-players should watch for a breakout on the SLV above its all-time high of $20.40. Some key near-term resistance levels you should also watch will come into play at $18.94 and $19.44 a share. Moves above those levels would signal very constructive price action.
|More on SLV|
|Who Owns Pan American Silver?|
Twitter and become a fan on Facebook.