Silver ETFs Can Shine Long-Term | Alternatives Channel

The iShares Silver Trust (SLV)  and the Aberdeen Standard Physical Silver Shares ETF (SIVR) are riding gold’s coattails this year, but some analysts see more upside over the long-term silver and the related exchange traded funds.

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.

“Despite a more tempered performance from precious metals during the third quarter of 2020, gold and silver prices still demonstrated gains and outperformed initial expectations from analysts at Haywood Research,” reports

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.

Sizing up Silver ETFs

In its report, Haywood Research said “the firm maintains its view that the precious metals complex is still within a long-term uptrend and believes that the ongoing pullback from peak gold price levels reached in early August represents a ‘healthy period of consolidation,’” reports

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.

Precious metals like silver have had a strong rally higher for much of 2020, September not with standing. However, a number of analysts still believe precious metals like silver have more room to run.

“During the quarter, gold prices averaged $1,911/oz, which was above the firm’s forecasted gold price of $1,800/oz and 11% higher than the second quarter average of $1,714/oz. Silver averaged $24.35/oz, again above the forecast of $18.00/oz and 49% higher than the second-quarter average of $16.38/oz,” according to

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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.