“When it’s in balance, it means than an increase in demand could push the market in favor of rising prices.”

At its current price levels, silver looks undervalued, says Rhind. “Silver is a long way off its all-time high, whereas gold is almost at its all-time high.”

Silver, in fact, is the only precious metal that is far below its all-time high, which was $49.95, a price last seen in 1980. That 1980 price for silver, adjusted for inflation, would today equate to approximately $130 an ounce.

“In an environment where people think precious metals are going to rise, don’t overlook silver, because silver could be the one that rises the fastest.”

SIVR competes with the iShares Silver Trust (NYSEArca: SLV), the only other silver-backed fund trading in the United States right now. SIVR has a 0.30% expense ratio; SLV is 0.50%. [7 Commodity ETFs You Should Know More About.]

ETF Securities publishes a bar list that’s updated every day, which shows the list of bars held by SIVR. In addition, the holdings are audited twice a year by a third-party specialist bullion assaying firm.

Heather Hayes contributed to this article.