Silver exchange traded funds (ETFs) looked shiny after the run-up in silver prices last month. iShares Silver Trust (SLV), the oldest of two U.S. silver related ETFs, is up 3.5% for the past month, while many other regions, sectors and asset classes have lost ground. The other silver ETF is the PowerShares DB Silver Fund (DBS) and it is comprised of futures contracts. DBS is up 3.3% for the month. So will silver continue to outshine?
The answer is up in the air, as are many issues concerning today’s financial markets. Fears of higher inflation and a falling dollar will help push more investors into precious metals, reports Don Dion for Seeking Alpha. SLV offers direct exposure to silver offering ownership of the metal instead of stocks in mining companies and others that would benefit from strong silver prices. Investors tend to buy precious metal, such as silver, because they are somewhat independent from the broad stock market.
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.