Though the prices of Silver remain low at this time of the year, they are expected to show a better side in the future. The current political scenario in the U.S. has inflated certain unnecessary bubbles in the financial markets. These factors have had a little impact in the flow of investing in silver.
A record breaking import of silver is anticipated from the Indian market in the next months which will prove to be very beneficial to the progress of the precious metal. More over the Indian rupees is showing strong appreciation against the USD which is more likely to pull up the demand figures of the metal. This is also the case with China where growth has been analyzed in the economy. Not only will it lead to an increase in the demand for the commodities it will also lift the demand of the silvery metal used in the manufacturing and industrial sectors of the economy. Silver is gaining popularity due to its excessive use in the manufacturing process, such as in photography, solar panels, and electrical appliances. Other than these main sectors that require the metal in their production units, the demand for the silver metal also comes from the coin industry and the jewelry industry. Hoardings of silver in the form of ingots or unwrought silver are also being reported. As per the Chinese national statistics the consumption of Silver in the jewellery business has risen this year by 19.3% which is one of the major factors in the increase of the demand for the metal.
The Government of China is expected to reach a goal of 21 gigawatts of Solar Power by 2015. The industry of solar power uses the metal in the production of photovoltaic cells used in the panels. Once used this metal cannot be recycled and thus there is only a possibility of an increase in the demand for Silver. Serving as a potential hedge against inflation, precious metals are always a form of keen investments. The Silver mining industry is not very volatile, and though the price variation effect the demand to some extent the mining industry is quite stable. Thus the inflows of investments in this industry are attractive bait for the investors. Some benefits relating to the issue of these funds are that they help to avoid the costs associate with the delivery, storage and insurance of the physical metal. Likewise the taxes implemented on the investments of the physical metal are far more than those related to the Silver ETFs.
The recent plunge in the prices of silver can be correlated to the fall in the Shares of Silver Wheaton Corp. This security is part of the Silver ETF. As on10/16/2013 SILVER WHEATON CORP holds 13.38% of the net assets pertained to the fund, followed by FRESNILLO PLC at 12.03%, INDUSTRIAS PENOLES CP 9.52%, TAHOE RES INC 6.34%, and MCEWEN MINING INC at 5.46%. The Fund is traded at spot prices at the NYSE Arca provides a transparent analysis of the reports associated with it for the investors concerned.
Most of the important mines are located in Mexico, Peru, Chile and China. Thus the funds major holdings are found in the Canada, United States, United Kingdom, Mexico, Argentina, Peru, Russia and Australia.
Global X Silver Miners ETF [SIL] delivers as per the performance of its 30 stocks attuned to the namesake NYSE listed Solactive Global Silver Miners Index. This Silver mining fund comprises of companies that are globally engaged in silver mining, refining, or exploration. The Silver ETF was incepted on 04/19/2010 charges its issuers an annual charge of 0.65%.