Silver corrected itself about 8% during the recent commodities downturn. It begs the question now whether that correction was part of a larger downtrend or whether there’s still cause to be bullish on silver exchange traded funds (ETFs).

Although silver saw a price drop this week, never fear: the near-term fundamentals appear to be in favor of the metal, says The Daily Crux. [Demand Propels Silver ETFs to Record.]

James Turk for The Resource Investors explains some of the supporting points for silver include:

  • The price drop in the last week occurred with bullish sentiment taking a nosedive, but no damage has been done to silver’s technicals.
  • The demand for physical silver remains very strong on three fronts: investment, industrial and safe-haven. [Commodity ETFs That Are Beating Gold.]
  • A lack of confidence in global currencies is helping to push investors into metals, which are viewed as alternative forms of currency.

The fact is, despite the correction, silver is still above its long-term trend line. If it’s a metal you want exposure to and you believe the rally, here are some funds to consider:

  • iShares Silver Trust (NYSEArca: SLV): Holds physical silver bullion
  • ETFS Silver Trust (NYSEArca: SIVR): Holds physical silver bullion
  • Global X Silver Miners (NYSEArca: SIL): Tracks silver miners from around the world
  • ProShares Ultra Silver (NYSEarca: AGQ): If you want a leveraged play on silver and believe it could gain further, consider this fund.

Tisha Guerrero contributed to this article.

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.