Silver ETF Begins To Shine

Silver has long been in the shadow of its golden counterpart, and focused ETFs mirror that trend from 2006. Last year, gold finished up 28% while silver added 18%. That was after suffering a few volatile swings, though.

iShares Silver Trust ETF (SLV) has seen its rate of accumulation slow, but the addition of a silver ETF in the UK and Switzerland are turning the trend around, reports Jane Louis for Resource Investor. Demand for the commodity dipped somewhat with the advent of digital photography, as silver is a major component in developing film.

But there is still no shortage of other uses for the metal. Industrial applications are the main source of silver demand in the market, as it is a good thermal conductor, electrical conductor, batteries use it, along with water filtration systems.

Silver will be growing in popularity as new uses are being developed, such as a wood preservative. In addition to SLV, PowerShares DB Silver (DBS) tracks the metal.

Comments

[Long-ShortGuy]

What's the difference between the Powershares ETF and the iShares ETF?

[EE]

If you think silver is good now just wait for the huge short position to start getting covered! Less than 1% of gold is used industrially but for the last 60 years industry has used up all production and reclaimation and 100 billion ounces of world inventory with maybe one billion left. Silver is far far rarer than gold. If just 1% of gold investors switch to SILVER EAGLES the price will skyrocket. $ in gold are in the trillions... $ in silver are in the low billions. The gold/silver ratio was 80/1 a few years ago, 55/1 now and probably going to historic 15/1 or lower when this story gets better known.

[ussmls7]

EE, I am in total agreement !! If you really want to get a better view point, go to silverseek.com . You can count on those holding phyical silver will be in good shape, but those holding a paper promise , had better verify that the silver is there with your name on it!!! At todays spot, silver is still cheap, many places sell bullion, but if you need storage, you can get that done also. I like to be able to see mine...