Themes: Silver, ETFs, Investment
Whilst Frank is talking about gold, it makes sense to look at silver, too. Silver tends to move like gold - except it can be a lot more volatile. The white metal is extensively used in industry and of course, jewellery. And despite its price volatility, investors’ demand is buoyant - and rising.
Now instead of buying into a physical chunk of silver, there’s a better way to play this trend. You should look at investing in silver Exchange Traded Funds (ETFs) to gain exposure to the metal’s price rally.
As the dollar stays under pressure against other global currencies and risk appetites increase, investment demand for silver has been on the up, pushing up its spot prices. Take a look at the chart below. It shows holdings in the iShares Silver Trust (ticker: SLV) for the past year-to-date.
You can see that demand has been steadily rising since January this year. Crucially, there hasn’t been a fall in holdings since early June, and it has hit a record high of 8,766.93 metric tons recently (circled).
Investment demand for silver has surged to stand above 8,500 metric tons 
Source: Stockhouse.com
What’s interesting is that despite the actual spot price of silver having fallen by near-20% since its early June peak, the ETF’s holdings have held firm.
Silver is a great commodity play at the moment. When the global industrial cycle starts to see a substantial and sustained pick up, demand will get a further boost. This will buoy the metal’s prices. Take note - silver ETFs are a sound investment. Put it on your to-do list.
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