SILJ is even more heavily allocated to some of the stocks that could play big parts in silver industry consolidation. For example, MAG Silver and Fortuna are that ETF’s second- and third-largest holdings, respectively, combining for 22% of the fund’s weight.

SILJ tracks the ISE Junior Silver Index, which tracks small-cap companies that engage in silver exploration and mining.

In the more mainstream demand side, silver jewelry demand is still rising due to increased consumption among emerging markets, notably in China where we are seeing a rising middle class with increased discretionary money.

On the supply side, silver miners are finding less deposits and producers are expanding into new projects, which suggests that silver could be in shorter supply ahead. [Silver ETFs on the Mend]

PureFunds ISE Junior Silver Small Cap Miners/Explorers ETF

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