Global X Silver Miners ETF (NYSEArca: SIL) rallied more than 30% in the third quarter and was the best performer among unleveraged exchange traded funds.

Gold and silver have surged following the Federal Reserve’s QE3 announcement but miner ETFs have outperformed precious metal prices.

“The introduction of the European Central Bank’s Outright Monetary Transactions … and the implementation of the Federal Reserve’s quantitative easing ad infinitum greatly improved the prospects that our forecast of dollar weakness will come to fruition at a swift pace,” said Jason Schenker, president of Prestige, in an Investor’s Business Daily report. “The downside risks to gold prices have been greatly reduced now that the Fed is on an endless buying spree of mortgage-backed securities.”

Miner ETFs are making up for lost time after seriously underperforming precious metal prices in recent years.

Global X Silver Miners ETF is up 21% the past month, compared with a gain of about 13% for iShares Silver Trust (NYSEArca: SLV). Silver prices were trading around $35 an ounce Monday morning. Despite the rally, the silver miner ETF remains below its 52-week high. [Gold, Silver Miners Lead the Way in Q3]

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