A popular exchange-traded fund that tracks the price of silver, the iShares Silver Fund, just posted its 14th-straight session of losses — extending its longest losing streak ever.
Early trading on Friday indicates that the SLV could fall for a 15th session.
The metal has fallen alongside gold in recent weeks in part because of an improving global growth picture and decreasing political uncertainty. Silver is often turned to as a safe haven in times of uncertainty.
After an unremitting plunge for the metal, some strategists say it’s time to buy it for a bounce.
“I think silver is very attractive, after getting killed the way it has,” iiTrader senior market strategist Bill Baruch said Thursday on CNBC’s “Trading Nation.” At current levels around $16.30 per troy ounce, he said, silver appears to be a “bargain” as it retests its December lows.
“I think this is a great trade to look back for a retest of $17, even $17.50, in the next 30 to 60 days,” he said.
From a fundamental perspective, Sunday’s French presidential election could send silver even lower, said Stacey Gilbert, head of derivative strategy at Susquehanna.
Polls indicate that centrist candidate Emmanuel Macron will defeat the far-right’s Marine Le Pen, whose victory would likely mean further European instability.
At the same time, “hard” economic data must begin showing more positive signs before investors write off owning safe-haven assets completely, Gilbert told “Trading Nation.”
“From a trade perspective, I like owning silver here. I think it’s a great time and a great entry point,” she said Thursday.
Some strategists say it’s a good time to buy silver.
In the short term, “silver is VERY oversold,” Miller Tabak equity strategist Matt Maley wrote in an email Friday to CNBC.
“Silver’s near-term oversold condition might be making it ripe for a short-term bounce,” Maley wrote, but until its positioning changes, it may be difficult for the commodity to see a longer-term bounce.
Before the latest string of losses, the 11-year-old fund’s longest down streak was 10 sessions in November 2015.