Given the overwhelming bearish sentiment and the recent price declines, investors may find a good contrarian bet with silver.
“Current valuations may be an attractive entry point, particularly if inflation surprises upward in the second half of the year and investors unwind their short positions providing a tailwind for prices,” Gold said.
According to the Federal Reserve’s latest statement, inflation on a 12-month basis is expected to remain somewhat below 2% in the near term but to stabilize around the Committee’s 2% objective or the mid-term, ABCNews reports.
ETF investors interested in gaining exposure to silver prices may consider options like the iShares Silver Trust (NYSEArca: SLV) and ETFS Physical Silver Shares (NYSEArca: SIVR), which are backed by physical silver bullion.
For more information on the silver market, visit our silver category.