The poor man’s gold may also regain its luster as an improving economy would also trigger increased industrial demand for silver.
“Rising growth, manufacturing, and industrial production coupled with rising producer inflation should provide a tailwind for silver demand. Silver supply is expected to constrict as miner capital expenditures continue to fall. Adding in new sources of demand such as solar panels and its cheapness to gold are the key rationale for why silver’s day in the sun may still be on the horizon in 2018 despite current negative sentiment,” Gold said.
Investors who want to use precious metals as a hedge and even a long-term play 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.
For more information on the metals space, visit our precious metals category.