Silver prices finished March on a high note, pushed by a confluence of factors. As the capital markets expect interest rate hikes to finally subside, silver prices could see more strength for the rest of the year.
According to Kitco News, silver ended March on a high note, “rallying more than $3, its best monthly performance since December 2020. May silver futures settled Friday at $24.235 an ounce, up 1% on the day and nearly 4% for the week.”
Silver prices are even pushing past their more expensive peer, gold, gaining almost 15% over the past six months. Gold is not far behind at just above 14%, but the disparity, big or small, is notable.
“Silver’s rally is even outperforming gold as the gold-silver ratio has fallen to a two-month low, currently trading around 82 points,” Kitco added.
A weaker U.S. dollar is also pushing prices higher given that, as mentioned, the Fed is likely to start getting more dovish on interest rate policy. Recent bank rescues have also been helping precious metals as investors fret over a shaky banking system and seek the shelter of safe haven assets.
Get Silver and Gold Exposure From Sprott
Investors looking to add silver exposure have a variety of options, including the purchase of silver bullion or a backdoor play via silver mining stocks. One option to consider is the Sprott Physical Silver Trust (PSLV) that adds physical exposure without the additional hassle of storing silver.
PSLV is a closed-end trust that holds unencumbered, fully allocated London Good Delivery bars of silver bullion, stored in the custody of the Royal Canadian Mint. Additionally, shareholders also have the option to redeem their shares for physical bullion anywhere in the world (subject to certain minimum conditions).
Redemptions of shares do not dilute the trust’s exposure for remaining shareholders. PSLV’s expense ratio is 0.62%.
Investors may also want to add gold exposure as well via the Sprott Physical Gold Trust (PHYS). As opposed to buying and holding physical gold, the fund provides an enhanced physical bullion structure, offering the ease of purchase and sale that comes with being traded on an exchange.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel.
