While metals investors may be waiting for gold to return to the $700 level, traders may want to keep an eye on silver exchange traded funds (ETFs). Silver not only rises with gold during a bull market, lately it outperforms it. Myra P. Saefong for MarketWatch.com reports physical demand for silver will continue to grow and the ETF will help demand. Insiders also point out silver is an industrial metal and industrial expansion has put a dent in silver stock piles. PowerShares DB Silver Fund (DBS) is a silver fund that invests in silver futures. iShares Silver Trust (SLV) actually hold the metal itself.
There are no copper ETFs in registration but PowerShares DB Base Metals (DBB) gives exposure to one-third each copper, aluminum and zinc. Demand for copper doesn’t need help from an ETF, as the Chinese consumption will take care of that.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.