It’s not hard to make a case for silver exchange traded funds (ETFs). The metal holds its own against gold quite well, outperforming it year-to-date. Silver is also well-positioned to benefit during the length of the global economic recovery.
Why is it time to consider silver?
- Gold prices are pretty high right now. Silver is known as the “poor man’s gold” with good reason – it’s far cheaper. If you’re feeling priced out of gold, you’re not hopeless. [Why Gold Miner ETFs Are Outperforming Gold.]
- Adjusted for inflation, silver prices should be trading at roughly $128 an ounce, and demand from ETF investors and market manipulators could really firm up the prices, reports Carl Delfeld for ETFXray.
- Global silver production is practically at a standstill this year. [Commodity ETFs: What You Should Know.]Many major economies mine silver such as Mexico, China, Australia and Chile. Peru is a smaller country but also supplies about 17% of the global silver supply.
- Keep silver in mind for a hedge as well, as it protects on currencies and inflation. [Gold and Silver ETFs: On a Break?]
- Silver is a very versatile metal; it’s not only popular in jewelry, but it has a wide range of industrial applications that put it in a prime spot to benefit in the recovery. It’s an excellent conductor of electricity and is popular in water purification, as well. [4 Ways Platinum Could Outshine Gold.]
For more stories about silver, visit our silver category.
- iShares Silver Trust (NYSEArca: SLV)
- ETFS Physical Silver (NYSEArca: SIVR)
- PowerShares DB Silver (NYSEArca: DBS)
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.