November’s Top-Performing ETFs: Silver, Gold Miners, Energy Services

|
Includes: DBS, GDXJ, IEZ, PSCE, PXJ, SIL, SIVR, SLV
by: Tom Lydon

While the stock markets were stuck in sideways trading for most of November, commodities picked up the slack. Silver rallied on the strength of gold and the energy sector reported higher profits.

Silver. Global holdings in silver-backed ETFs stand at more than 448,887,000 million ounces. Although some of the demand has been driven by ETFs, analysts suggest that increasing industrial demand also has had a major role in pushing silver prices to 30-year highs. The demand for physical silver remains very strong on three fronts: investment, industrial and safe-haven. A lack of confidence in global currencies is helping to push investors into metals, which are viewed as alternative forms of currency.

  • iShares Silver Trust (NYSEArca: SLV): up 13.5%
  • ETFS Silver Trust (NYSEArca: SIVR): up 13.6%
  • Global X Silver Miners (NYSEArca: SIL): up 18.7%
  • PowerShares DB Silver (NYSEArca: DBS): up 13.7%

Gold Miners. Gold miners have been performing simply because they’ve been mining a hot product. Gold’s price is near records, giving miners both big and small solid profit margins. Additionally, increased demand for gold is keeping these guys busy to meet it. Smaller gold companies are often acquisition targets for the larger ones. Big companies can’t ramp up production as easily, so it’s often just easier to buy a new one.

  • Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ): up 11.8%

Energy. Oil and gas corporations issued a slew of good earnings reports as higher oil prices and a weaker dollar triggered more global fuel purchases. Analysts at Wood Mackenzie believe that oil & gas companies will spend $380 billion in finding and developing potential fields this year and spending levels will fully recover to 2008 levels by 2012 or 2013.

  • PowerShares S&P SmallCap Energy Portfolio (NASDAQ: XLES): up 15%
  • PowerShares Dynamic Oil Services (NYSEArca: PXJ): up 11%
  • iShares Dow Jones U.S. Oil Equipment & Services Index Fund (NYAR: IEZ): up 11%

Max Chen contributed to this article.

Disclosure: None