Silver is not to be overlooked. Over the past year, only the ETFS Physical Palladium Shares (NYSEArca: PALL) has outpaced SLV and SIVR among precious metals ETFs.
A recent decline in silver volatility was a tell that the white metal was on the cusp of a rally. In May when the gold/silver ratio was residing at its highest levels since 2010, silver volatility was spotted near its lowest levels in a decade, indicating limited downside risk. [Silver ETFs Regain Lost Shine]
“Prior to the 2008 crisis, the ratio of gold to silver was about 50. It spiked to near 84 during the 2008/9 crisis and declined to near 32 in 2011. Due to its larger industrial demand base, absent a stumble in the global economy, the ratio of gold to silver is likely to continue to decline in our view,” said ETF Securities. “With total silver demand increasing on the back of a recovering global economy and total supply declining, notably due to reduced recycling from lower prices, higher prices are necessary help rebalance the supply demand deficit.”
ETFS Physical Silver Shares
