Moreover, unlike gold, silver sees much higher industrial demand. The precious metal enjoys heavy industrial demand that benefits from an expanding global economy.
Looking ahead, the ongoing negative interest rate environment, with European and Japanese central banks cutting benchmark rates deeper into the red to promote growth, could push investors toward precious metals as a more stable store of wealth.
Demand from India could also bolster silver ETFs this year. India has previously looked to curb gold imports to support the rupee and lower account deficits. Some market observers believe even small substitutions by Indian citizens from gold to silver could lead to significant upside for the white metal.
“Currencies are created by increasing debt and are backed by nothing but hope, faith and confidence. Exponentially increasing debt is not sustainable,” notes ETF Daily News.
For more information on the silver market, visit our silver category.