Strong investment is running into silver exchange traded funds (ETFs) especially since the physically backed funds are so readily available.
The world’s largest silver-backed ETF iShares Silver Trust (NYSEArca: SLV) said its holdings are soaring as investor appetite for the metal rebounds, reports Commodity Online. [Silver ETFs: Catch ‘Em On the Rebound.]
According to Right Side News, silver’s price reached a new three-decade high of more than $34 per ounce, despite a pullback in other commodities this week.
Silver has two things going for it these days:
- Silver is attractive right now as a hedge to inflation and the overall uncertainty of the global economic picture. The recent uprising in Middle East countries has sparked some safe-haven interest in the metal. [Why Cotton and Silver ETFs Are Leading the Way.]
- Silver is also an industrial metal with a wide range of applications. Countries that are continuing to build up infrastructure and urban areas are making big use of the metal.
There are several ways you can play this:
- ETFS Physical Silver (NYSEArca: SIVR): SIVR is a physically-backed option to play silver; each share represents ownership in physical silver, which is stored in secure vaults.
- PowerShares DB Silver (NYSEArca: DBS): PowerShares’ silver ETF is composed of futures contracts for the metal, so it doesn’t necessarily keep in line with the spot price.
- Global X Silver Miners (NYSEArca: SIL): Just as gold miners see their profit margins increase when gold prices are high, silver miners enjoy similar benefits. This fund is also a good play for investors who aren’t interested in physically-backed or futures-based options.
- ProShares Ultra Silver (NYSEArca: AGQ): If you think silver prices will continue to rise and want to maximize your returns, this fund is an option. But be careful: know the risks of inverse and leveraged ETFs before you dive in.
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.