Silver has been flexing its muscles as one of the best performers in the last two decades out of all the Metal ETF's. All the investors that have been investing in this silvery metal have seen a fairly good stake in the last couple of years.
Global X Silver Miners ETF (NYSEARCA:SIL) has been a huge hit as an innovator in the ETF territory in recent years. This Index is the Solactive Global Silver Miners Index which was started in April 2010 and comprises of stocks that are engaged in the industry of mining, refining and exploring. This index reflects the performances of the silver mining industry. In order for the silver stocks to move upward the investors are relying on a strong silver environment according to the present scenario. The Silver ETF's are at a low but as stated by David Zeiler: Silver is definitely much more alluring than Gold and thus it is a smarter option to consider investing in Silver Miners Funds. So we can definitely expect the tide to turn in its favor. It's prices have come down by 10% -20%, but there is a strong anticipation that the demand for this precious metal is likely to increase and funds are shifting from the Gold basket to the silver. Global Specialist Peter Krauth has forecasted that its prices are likely to reach a record of $54 an ounce. The industry demand for this metal is expected to see a rise of seven percent this year and six percent next year. The economic demand is going to push the prices of this glitzy metal up higher. With a rise in the prices the investment opportunities of the underlying metal will experience an inflow of funds and the mining sector which is ever ready for in cashing on this surge.
The exponential growth of the global market along with the technological revolution is going to increase the demand for this metal. This boom in the investment is not going to end soon, and that is definite according to David Zeiler. The optimism in the US and the increase in its demand from China have added some value to this white metal.
Silver plays a dual role in the commodities market. It is both used as an industrial metal and a hard asset. The price game is influenced by various factors. This glittery metal is extracted from the copper, gold, or zinc ores. Geologically there is a shortage of the availability of the mineral ores. But, any increase in the supply and demand of copper for the housing and construction Industry results in the indirect effect to the supply of silver and subsequently into its prices. It is used as a hedging instrument as the dollar weakens. Silver being the most versatile of all the metals available finds its uses in the field of photography, jewellery and mirrors. Due to its conductivity it is used excessively in the electronics Industry. It is also used in the process of cleansing medicines and water, dentistry and Coin making. The use of silver in the Solar Industry for making solar panels with silver pastes is the latest and predominantly an important cause for the rise in its demand. Since there is an exceptional boom in the Green Energy Projects and renewable energy is the light of the day.
7.6 billion ounces of silver have been extracted in the last 4,400 years. The production of this metal has increased by nearly 15 billion ounces. Silver Stocks have always been under valuation. This under valuation serves as a positive vibe for investing into a risk free financial sector.
The NYSE trades the Silver ETF on spot prices. Due to the increase in the prices of oil and as a hedge against inflation, this poor man's gold is the most sought Portfolio for investor's baskets.
Global X Silver Miner ETF [SIL] delivers as per the performance of its 32 Stocks of the most traded Silver Mining Fund, Exploration and Refining companies. SIL follows the name sake Solactive Index and charges yearly an expense of 0.65 base points. The three top most holding are Fresnillo Plc, (12.50%), Industrias Penoles S.A.B. De C.V. (12.29%) and Silver Wheaton Corp., (11.96%) as of March 31, 2013.