Despite the dip in silver bullion prices, exchange traded funds that track silver prices continued to attract investment interest, revealing investors’ faith in the precious metal.
Year-to-date, SLV has attracted $243.9 million in assets as the ETF eked out a 0.2% return.
“Silver seems to have retained a lot more loyalty than the other precious metals,” Andrew Leyland, an analyst at GFMS, said in a Financial Times article.
In contrast, gold prices have strengthened this year, but investors seem to skeptical about the recovery. The SPDR Gold Shares (NYSEArca: GLD) has increased 7.5% year-to-date, but the fund has experienced $596.6 million in outflows so far this year.
COMEX silver futures currently sit around $19.3 per ounce. Leyland pointed to the $20 mark as an “important psychological level” for silver, with bargain hunters picking up the precious metal as prices dipped below the level.
After a steep sell-off last year, silver prices are strengthening on greater global demand for jewellery and silverware fabrication, which both increased more than 10%, notably in Asia. Additionally, India demand for silver rose due to the government’s restrictions on gold imports.