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Sunday, February 13, 2011

Silver ETFs: Catch ‘Em on the Rebound

For three straight trading days, silver prices have closed above $30 and it’s got some analysts thinking that the metal and silver exchange traded funds (ETFs) could be gearing up to gain big again.
Here’s the case:
  • Silver is less than $1 away from its recent nominal highs of $31.2375, reports Tyler Durden for Silver Hedge.
  • Mark Thomas for Commodity Online reports that silver is undervalued right now and the physical market is tight, creating a recipe for some possible moves.
  • According to CoinNews, the renewed concerns about inflation and a weaker U.S. dollar are still playing on investors need for safer haven investments. With quantitative easing also a huge factor, the precious metals could be in a solid position.
iShares Silver Trust (NYSEArca: SLV) and ETFS Physical Silver (NYSEArca: SIVR) are the two physically-backed silver ETF options and they’ll give you direct exposure to spot prices.

Global X Silver Miners (NYSEArca: SIL) are an option if you’re more into equities, though they don’t offer the same safe-haven benefits. The good thing here, though, is that when prices are high, profit margins tend to be pretty nice, too.

Disclosure I am long SLV shares.

1 comment:

  1. Silver is by far the better value gold has gone up much more silver much less.