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An exchange traded fund that invests in silver miners rose Wednesday in the face of weaker metal prices as low valuations in the stocks attracted investors.

Global X Silver Miners ETF (NYSEARCA:SIL) rose 1.3% on Wednesday while iShares Silver Trust (NYSEARCA:SLV), which holds bullion, fell 1.3%.

Precious metals producers are trading at their lowest levels relative to profits in almost three years, report Thomas Biesheuvel and Kevin Crowley for Bloomberg. According to the benchmark Philadelphia Gold & Silver Index of companies, some miners are trading as low as 14 times earnings last month, compared to the average 27 times profit over the last five years.

“The equities have great margins now,” remarked Will Smith, co-manager of the CQS Group’s City Natural Resources Trust. “The generalist looking for earning momentum would have to look at the equities.”

Technically, silver and silver stocks are forming what appears to be a “cup and handle” pattern — a bullish continuation pattern that shows a consolidation followed by a breakout, writes Jordan Roy-Byrne for Minyanville.

Global X Silver Miners ETF

Max Chen contributed to this article.

Disclosure: Tom Lydon’s clients own SLV.

Source: Miner ETF Shakes Off Decline In Silver Prices