The iShares Silver Trust (NYSEArca: SLV) and ETFS Physical Silver Shares (NYSEArca: SIVR), which are backed by physical silver bullion, each rose more than 1% last week, but the major silver ETFs are still trying to cobble together credible momentum.
Looking ahead, the ongoing negative interest rate environment, with European and Japanese central banks cutting benchmark rates deeper into the red to promote growth, could push investors toward precious metals as a more stable store of wealth.
Moreover, unlike gold, silver sees much higher industrial demand. The precious metal enjoys heavy industrial demand that benefits from an expanding global economy.
“Silver remains weaker, relative to gold. For July to prove its potential for change, price needs to follow through to the upside, or, at a minimum, have a shallow correction,” reports ETF Daily News.
Some commodities market observers see more upside coming for silver and the aforementioned exchange traded funds. It could just be a matter of investors properly timing new entries into the likes of SIVR and SLV. Expect gold prices to continue affecting silver and the related ETFs.