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.