The Silver mining industry companies have been expanding their operations to cater to the needs of the demand for this glitzy metal. The ETF has $300 million in AUM approximately to its credit and has seen an increase in the volume of its shares by a substantial amount, as compared to Gold, Silver is doing much better with 27% year to year. Factors that influence and support the precious metals ETF are the rising inflationary prospects and the policies oriented towards the positive approach for investments in these haven metals by the Central Banks. This precious silver metal is a favorite among the investors as it acts as a hedge against inflations. For a better option of gains from the investments, investors see these metal ETF's as a scorer as compared to other emerging and developed markets that have low interest rates.
The industrial sector uses silver an essential raw material in the electronics and solar power industry along with its use in the cosmetics, coins, and photography and jewellery commodities. There is a great demand for the metal in the market. Its price therefore has a direct effect on the global economic activities where fifty percent of its demand comes from the industrial sector and 30% of the demand from the coin making, jewellery and silverware markets.
The rise of the demand for silver in the total manufacturing sector worldwide has supported the need to invest in silver.
There has been a negative impact in the investment of silver in the last eight years due to the global recession. But of lately there has been a remarkable increase in the investment and net flows in the mining ETF space. As the surge has lead to anticipation globally that there might be a sudden rise in the mining sector which is dually expected soon, due to the increase in the demand for silver. As this metal has proved itself much more useful than just being traditionally useable, but also as playing an efficient role as a hedge against inflation. Sadly the fictitious negative hype of the downfall of the prices of silver has resulted in weak sessions for the metal, which viciously have been kept down further by the China data.
A burst out of comments regarding the slowdown in its manufacturing industry had created a negative and false alarm of a surge in the demand for this metal, as this metal has its role in the industrial sector. So of lately the Silver Mining Fund has not been doing too well in the financial market. At times investors fail to see the potential in the Silver mining equities despite the fact that they could actually yield better returns than investments in the physical metal itself. The investment in the physical metal itself would require space, insurance and delivery costs which are not a good presentable option for investing into.
The demand for silver is higher than the supply. The demand for this precious metal is increasing at a 3% rate annually. The facts could pull the urge to invest in the mining sectors so as to meet the demand of the commodity which has a much better usage value than its counter golden cousin.
The Silver mining fund on the contrary offer a valuable exposure to the biggest mining and exploration companies in the Silver mining sector. Attuned with the Solactive Global Silver Miners Index it includes the mid cap industries and the large cap industries largely tilted towards United States and Canada.
Global X Silver miner etf [SIL] follows the name sake Solactive Index comprising of 32 stocks associated with Silver miner ETF. Since the inception of Silver ETF in April 2009 an annual charge of 0.65 basis points is being charged to its fund issuers.