How To Profit From Silver's Shine

Sep. 07, 2011 5:29 AM ETSLV, SIVR, SIL, GLTR
Jim Trippon profile picture
Jim Trippon's Blog
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Contributor Since 2008

Jim Trippon, CPA, is the editor-in-chief of China Stock Digest (, America's #1 performing China investment newsletter as ranked by Dow Jones - Hulbert Financial Digest. All of the stocks covered by China Stock Digest ( may be purchased by US investors in US based retail brokerage accounts. A professional investment manager, Trippon has worked extensively inside China, and maintains a permanent team of financial analysts in Hong Kong, Shanghai, and Beijing. He leads an annual China Investors Fieldtrip each October and his new book Becoming Your Own China Stock Guru ( was recently released by John Wiley & Sons.
Since I'm taking my first vacation in almost two years, I wanted to divert your attention to this article while I'm out of the office. If you missed it the first time around, I encourage you to take a moment. With overall market conditions operating in their current state, there is a profit to be made if you know where to look.

In all my years (the total is quickly approaching a decade; where did the time go?!) trading and writing about financial markets, I've found myself frequently surprised about how people react to sensational headlines and rumors. Maybe I shouldn't be. As one of my trading mentors told me (I think he was paraphrasing from a book): The only thing about the market that doesn't change is human behavior. Yep, we humans are a predictable bunch.

Take the example of silver prices and the price action in ETFs backed by physical silver after the CME Group went on a margin-raising rampage for silver futures contracts earlier this year. Gold's cheaper cousin was stalking highs not seen since the Hunt Brothers cornered the silver market over three decades ago and the white metal was probably a little frothy, but the margin hikes predictably scared a lot of investors out of the market.
The April/May area on the chart of the iShares Silver Trust (NYSE: SLV), the largest and most liquid ETF backed by physical silver, is flat-out gut wrenching. Then again, the last several months have been quite favorable to silver and looks like the metal could be shaping up for a run back to its 2011 highs, if not beyond.

etf,leverage etf,exchange-traded fund,etfs,exchange-traded funds,etf profit report,global profits alert,jim trippon

Yes, silver has had a spectacular run, but with all this quantitative easing and fiat currency talk, do you really want to be long the dollar or euro these days? I know I don't. So a little (at least) silver exposure makes sense right now. Check out these ETFs:
  1. ETFS Physical Silver Shares (NYSE: SIVR): This fund backed by physical silver is a fairly new rival to the more heavily traded iShares Silver Trust. Short-term traders can pick either fund, but long-term investors may want to opt for SIVR with its expense ratio of 0.3% compared to 0.5% for SLV.

  2. Global X Silver Miners ETF (NYSE: SIL): SIL is one of my personal favorites, but don't consider that a “buy” recommendation because this ETF, which tracks an index of silver miners is NOT for the faint of heart. In its short lifespan, SIL has had multiple days of moves of 5% or more. Remember miners will fall harder than the underlying commodity when that commodity retreats. Then again, miners have been up to the task as of late.

  3. ETFS Physical Precious Metals Basket (NYSE: GLTR): This new ETF with an appropriate ticker will get you involved with physical holdings gold, silver, platinum and palladium in one fund. Silver is currently the second-largest holding. GLTR's concept is an intriguing one, but note that the each of these metals is volatile on their own and putting four of them together escalates that volatility.
Of course, there are other avenues in the ETF universe for investors looking for silver exposure, but these are my personal favorites. There are plenty of price forecasts out there calling for silver to run to $50. Others are bit more ambitious and call for $60 an ounce. Some believe the gold/silver ratio of 25 will remain steady over the coming years and those prognosticators are calling for $5,000 an ounce on gold and $200 an ounce on silver. Whether it's $50, $60 or $200 an ounce, I'm willing to bet silver is headed higher from here.

Click HERE to learn more about the ETF Profit Report - An ETF Trading Service For Serious ETF Investors
Here's why you don't have to worry about the "fine print" anymore...

There can be some really nasty surprises in store for you when you buy and sell ETFs.
Remember, although ETFs combine the best of both worlds of stocks and mutual funds – they can act totally different from each in real life.
Those differences are usually spelled out in the "fine print" of the ETF's prospectus.
Fun reading? Not hardly.
To get more details on the ETF service recently voted "The Most Accurate in America", tap on the link below...

For more information and archived issues, visit

Global Profits Alert (GPA) is published by Trippon Financial Research, Inc. a financial media organization with offices in the United States, Hong Kong and Mainland China. GPA is written by Jim Trippon in conjunction with George Wolff, Sunny Wang, Todd Shriber, Kelley Damiani and J. Daryl Thompson.

Would you like to republish this article? Global Profits Alert issues can be republished, as long as the republished issues contain the name of the author(s) and the following short paragraph:

This information was brought to you by, a publication of Trippon Financial Research, Inc. publishes information on Investing in the China stock market and emerging markets, dividend stock and income investing, exchange traded funds (ETFs), green energy stocks, technology stocks, global market trends and other investment information. To view archives or subscribe, visit
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.