Along with gold, silver prices are starting to see an emergence given a confluence of events that are forcing investors to re-think safe haven assets like precious metals.
Silver can pose a value-added option for investors as the price of the precious metal continues to be low. The demand for silver is expected to rise this year amid a confluence of events related to rising inflation, higher interest rates, and geopolitical events like the crisis at the Russia-Ukraine border.
“A compelling argument can be made that 2022 will be a good year for silver,” said Edmund Moy, who is also a former director of the United States Mint and senior IRA strategist for gold and silver dealer U.S. Money Reserve, as noted by a MarketWatch report. “As the global economy recovers from the pandemic, expect to see silver demand rise from the industrial sector.”
In the current market where rising inflation is a constant concern, adding exposure to silver can also be an ideal play for investors looking for a hedge. Additionally, silver has more utility value versus its more expensive precious metal peer, gold.
“Silver and other hard assets are often considered good stores of value in inflationary periods — and silver’s dual nature as both a precious metal and an industrial metal makes it unique,” a WTOP News article explains. “Aside from coins and jewelry, the metal is used in solar panels, electric vehicles, LED lighting, medical devices and other products.”
A Silver Mining ETF to Consider
Getting silver miner exposure is available using the Global X Silver Miners ETF (SIL). Per the fund’s description, SIL seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Silver Miners Total Return Index.
The fund is up about 8% during the month of February, potentially forecasting an early rally. Should a confluence of events work in silver’s favor, look for this ETF to rise in tandem.
SIL offers investors:
- Targeted exposure: SIL is a targeted play on silver mining.
- ETF efficiency: In a single trade, SIL delivers efficient access to a basket of companies involved in the mining of silver.
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