4 Reasons to Consider the Silver ETF

As commodities continue to remain attractive, what is driving the increased demand of silver and its ETFs?

Devangi Josji for the Economic Times states that rising industrial usage and a rebound in investment is what is making silver attractive.

• Silver’s exceptional electric conductivity makes it ideal for use in electronic products and its chemical properties make it useful in the preparation of catalysts.
• The shiny metal also boasts anti-bacterial properties, which are leading to its increasing use in the medical and water purification industries.
• Some other industries utilizing silver are food packaging and alternative energy, as silver is used in solar panels. Additionally, the emergence of RFID, a tagging technology used in supply chain management, is expected to add to the increase in silver’s demand.
• Many investors are fearful of inflation and are starting to protect themselves and hedge their positions.

When looking at silver, one must also consider supply issues. Worldwide cuts in mine production of zinc and lead, of which silver is a by-product will definitely stir up supply issues and keep supply down, further making the white metal attractive.

One way to access silver is by looking at the iShares Silver Trust (SLV) up 19.6% year-to-date and above its 200-day moving average.

For more stories on silver, visit our silver category.

Kevin Grewal contributed to this article.

Comments

[JGL:]

This is mostly the "rational" view. You do not mention anything on the other side of this ETF mentioned in several articles on this website, i.e. "so-called "manipulation". In other words can an investor only use the economical arguments listed to invest in SLV or should one also consider the potential influence of instituions and their power to influence the price of this ETF.

Jul 03 08:26 AM