The iShares Silver Trust (SLV) and the Aberdeen Standard Physical Silver Shares ETF (SIVR) are two of the brightest stars among commodities exchange traded products this year and even with the funds’ recent breathtaking rallies, some market observers see more upside for silver.
Silver prices and related ETFs have surged on improving fundamentals with demand-side support due to the coronavirus uncertainty, stimulus measures, and recovering industrial sector. On the other side, supplies are dwindling as well.
“Bank of America says it is “feasible” that silver could hit $35/oz. next year and reiterates its prediction that gold may reach $3,000/oz. within 18 months,” according to Seeking Alpha.
SIVR seeks to replicate, net of expenses, the price of silver bullion. The shares are backed by physically allocated silver bullion held by the custodian. All physical silver held conforms to the London Bullion Market Association’s rules for good delivery.
Shine on Silver ETFs
SLV seeks to reflect generally the performance of the price of silver. The Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities. It is not actively managed. The Trust does not engage in any activities designed to obtain a profit from, or to ameliorate losses caused by, changes in the price of silver.
It’s a good time to be a precious metal investor, and not just in gold. Silver, with its wider industrial use, is also gaining steam and as such, the bulls are out in full force.
Silver futures are chugging alongside gold’s serendipitous run higher amid the uncertainty of the coronavirus pandemic. With equities still a wild card heading through to the end of 2020, precious metals like silver are benefiting.
“BofA believes silver will benefit from a macro backdrop of low interest rates and a re-inflating economy, with demand also helped by a green stimulus that would use more alternative metals,” according to Seeking Alpha.
Another fund to consider as a backdoor play on silver is via miners in the ETFMG Prime Junior Silver Miners ETF (SILJ), which recently surpassed the $300 million in assets. The fund seeks investment results that correspond generally to the price and yield performance of the Prime Junior Silver Miners & Explorers Index.
For more alternative investing ideas, visit our Alternatives Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
