Even if safe-haven demand for hard assets abates, silver exchange traded funds could continue to find support out of the industrial sector as the precious metal is a major component in many manufactured products.
For instance, silver used in the photovoltaic panel industry is growing and could reach record levels in 2018, Maxwell Gold, Director of Investment Strategy for ETF Securities, said in a note.
“Meanwhile, money managers boosted their net-long position, or the difference between wagers on price gains and bets on declines, by 5.5 percent to 98,845 futures and options in the week ended April 11, the highest in U.S. government data going back to 2006. That helped propel prices on Monday to $18.655 an ounce, the highest since November. The contract for May delivery fell 0.3 percent to $18.225 at 8:11 a.m. in New York on Wednesday,” according to Bloomberg.
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