“The continued downturn in mining capital expenditure, currently the deepest since 1997, may keep silver in a supply deficit,” Gold said.
Furthermore, the rising industrial demand may help keep the market in deficit despite lower investment demand.
Platinum and palladium may also experience greater demand among a auto manufacturers as auto sales gain momentum.
Investors who want access to precious metals may consider a number of physically backed metals-related ETFs as a way to diversify a traditional stock and portfolio, including ETFS Physical Swiss Gold Shares (NYSEArca: SGOL), ETFS Physical Silver Shares (NYSEArca: SIVR), ETFS Physical Platinum Shares (NYSEArca: PPLT) and ETFS Physical Palladium Shares (NYSEArca: PALL). ETF investors can also use the ETFS Physical Precious Metals Basket Shares (NYSEArca: GLTR) as a catch-all of all four precious metals.
“A diversified basket of precious metals tends to perform more consistently versus any single metal and creates an exposure to both the cyclical and non-cyclical drivers of gold, silver, platinum and palladium as a whole,” Gold added.
For more information on the metals space, visit our precious metals category.