ZYTrade Editors: Bullish on silver? No, you’re not too late. If you don’t want to buy physical silver outright, here are five exchange traded funds to help your portfolio get some exposure.
Silver might never hold a candle to gold. But that doesn’t mean you can’t put it to good use in your portfolio.
Silver prices are up 36% so far in 2020, beating gold by a solid 10 percentage points, providing wind beneath the wings of silver exchange-traded funds (ETFs). But given the metal’s second-class status, it’s possible this is the first you’ve heard about its stellar outperformance.
How much do people look down upon silver? Olympians who win bronze medals tend to exhibit more happiness than the silver medalists sitting a step higher on the podium.
OK, silver is far more popular among investors than bronze, but it still doesn’t come close to ol’ Element 79. Consider that the iShares Silver Trust (SLV), the largest silver ETF on the market at $12.6 billion in assets under management, is a mere sixth of the size of the $75 billion SPDR Gold Shares (GLD). Fewer silver funds are vying for those assets, too. Still, there are several reasons to consider investing in silver, even if it’s just a small allocation.
“While gold tends to get the most attention, silver, along with platinum and palladium, is also an important piece of a precious metals portfolio,” says Charles Sizemore, principal of Sizemore Capital Management. “While silver also has more industrial uses, and is thus somewhat sensitive to the economic cycle, it has also been a viable inflation hedge over time.”
And several tailwinds are conspiring to lift silver even higher in 2020.
“Silver’s physical supply growth largely is a by-product of base-metals mining … As mining capex for these base metals is reduced in response to weaker demand, silver’s physical surplus will continue to contract,” BCA Research analysts write in a recent note to clients. “On the demand side, a pick-up in industrial activity will benefit silver more than gold, given its relatively higher share of industrial consumption.”
Here are five silver ETFs to buy if you’re bullish on this often-snubbed metal.
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