5 ETFs To Play Silver’s Uptrend

As political uncertainty in Africa and the Middle East continues to prevail, commodities, in particularly crude oil, gold and silver have surged.  As for the future, it appears to remain bright for all three of these commodities, but especially so for silver.

In addition to political uncertainty, macroeconomic forces have been favorable for the metal. Increases in money supply and a record budget deficit have many concerned about the overall strength of the dollar and a reduction in the purchasing power of the nation.

In the near future, it appears that imbalances in supply and demand are likely to provide positive price support to silver. Due to its heavy industrial uses, demand is expected to increase as emerging economies around the world grow and developed nations concentrate on cleaner energy sources. On the supply side, total annual world consumption is higher than mine production and is slowly eating away at inventories held by governments. Furthermore, the US Geological Survey suggests that silver in the Earths’ crust is diminishing at an exponential rate.

In a nutshell, the basic forces of supply and demand are likely to support silver prices in the near future giving investors something to look forward to.

Some ways to play silver include:

  • iShares Silver Trust (SLV), which is the largest U.S.-listed silver ETF. SLV holds physical silver bullion and carries an expense ratio of 0.50%.
  • ETFS Physical Silver Shares ETF (SIVR), which, similar to SLV, holds physical silver bullion and tracks the physical price of silver.
  • SGlobal X Silver Miners ETF (SIL), which is an equity-based play on silver giving exposure to 25 different silver miners around the world. Its top holdings include Silver Wheaton Corp. (SLW), Fresnillo Plc and Pan American Silver Corp. (PAAS).
  • E-TRACS CMCI Silver ETN (USV), which is an unsecured, unsubordinated debt security linked to an index designed to reflect the returns available on an basket of silver futures contracts
  • PowerShares DB Silver Fund (DBS), which gives exposure to silver through the utilization of futures contracts.

Disclosure: Long SLV

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About etftutor
Kevin Grewal is the founder, editor and publisher of ETF Tutor and serves as the editor at www.SmartStops.net, where he focuses on mitigating risk and implementing exit strategies to preserve equity. Additionally, he is the editor at The ETF Institute, which is the only independent organization providing financial professionals with certification, education, and training pertaining to exchange-traded funds (ETFs). Prior to this, Grewal was a quantitative analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds a bachelor's degree from the University of California along with a MBA from the California State University, Fullerton. He is contributing author on The Street - his articles can also be found published on various sites including Yahoo! Finance, The Globe and Mail , Daily Markets, MSN Money, Seeking Alpha, Fidelity Investments, Traders Library, and Minyanville. Prior to this, Mr. Grewal was an analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds

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