Letter 3: Silver Records a Spectacular Rise in the Exchange-Traded Funds Market

Kobeissi Analysis, recently published on X, highlights a remarkable phenomenon in the precious metals market. The third letter draws attention to the extraordinary dynamics in the silver sector, where investors are observing an unprecedented acceleration of capital flows into silver exchange-traded funds.

Doubles $SLV Assets: A Benchmark Achievement

The largest silver investment platform, $SLV, has attracted colossal amounts of capital. Assets under management have surpassed the $50 billion mark in just about 100 trading sessions, representing one of the fastest rises in the history of exchange-traded funds on the U.S. stock market.

To understand the scale of this growth, the third letter provides a revealing comparison: $SLV exceeded this doubling from $25 billion to $50 billion faster than any other ETF in the U.S., except for $IBIT (the largest Bitcoin investment fund). The latter reached the same milestone in less than six weeks of trading.

Silver Outperforms Other Asset Classes

The analysis also offers other comparative perspectives that highlight the spectacle of this growth. The MSCI EAFE fund, $IEFA, which tracks developed markets outside the U.S. and Canada, took nearly 270 trading sessions to double assets from $25 billion to $50 billion. The difference is vast: while silver required about 100 days of trading, international markets needed almost three years.

Extraordinary Market Momentum Indicators

The third letter also highlights other signs of intense activity in the silver market. $SLV recorded five consecutive days with gains exceeding 3% each, the longest streak of increases since its inception in April 2006. This behavior demonstrates strong buying activity and a lack of selling pressure.

The weekly trading volume for $SLV reached a record $79 billion, nearly doubling the previous maximum set in 2011. This figure indicates the high level of attention directed toward silver investments and the significant flow of funds.

Conclusion: A Turning Point

The data presented in the third letter suggest that the silver market is experiencing a period of extraordinary investor interest. The combination of rapid ETF asset growth, a long streak of consecutive gains, and record trading volumes creates a market story that captures the attention of industry participants worldwide. The momentum is rightly described as historic, marking a notable phase in the evolution of precious metal investments.