Silver Etfs
Introduction
While the world is still in political and economic turmoil, one of the best “high-reward, low-risk” ways to invest was in commodities such as gold and silver. Silver Exchange Traded Funds (ETFs) are traded in the stock market providing a non traditional investor of silver an easy way to gain exposure without having to purchase bullions of the commodity. The first silver ETF arrived on the scene in 2006—in the form of the iShares Silver Trust, managed by Barclays Global Investors. Today, the ETF has over $13 billion in assets and has returned 25.17% in average annualized returns since inception. Not only iShare Silver Trust, the spot price of silver (per ounce) crested $35.12 in April 2011, for the first time since 1980. Silver ETFs can hold silver bullion or invest in derivatives that track the actual spot price of silver on daily basis. Most silver ETFs usually invest in raw silver– usually silver is held physically by fund managers or a custodian bank. In essence, silver ETFs grant the investor the right to a given amount of silver that’s usually measured in ounces. Fund managers aim to mirror the spot price of silver, which is traded openly in the world commodity market. By and large, ETFs can provide investors with higher liquidity and greater safety than if they own the physical metal. In addition, access to silver ETFs is wide open—much more so than buying silver directly on the open market. Besides rising commodity prices, silver-themed ETFs offer investors greater liquidity, increased flexibility, and the chance to cash in on the commodity upturn at a substantially lower price than via direct investing.
History & Current Trends
Before we focus on specific sliver ETF, we should first analyze price of silver and the silver’s market in the past, because there was a very strong relationship between the silver price and the ETF of sliver investment. Silver prices remained under pressure for most of 2000; the
While the world is still in political and economic turmoil, one of the best “high-reward, low-risk” ways to invest was in commodities such as gold and silver. Silver Exchange Traded Funds (ETFs) are traded in the stock market providing a non traditional investor of silver an easy way to gain exposure without having to purchase bullions of the commodity. The first silver ETF arrived on the scene in 2006—in the form of the iShares Silver Trust, managed by Barclays Global Investors. Today, the ETF has over $13 billion in assets and has returned 25.17% in average annualized returns since inception. Not only iShare Silver Trust, the spot price of silver (per ounce) crested $35.12 in April 2011, for the first time since 1980. Silver ETFs can hold silver bullion or invest in derivatives that track the actual spot price of silver on daily basis. Most silver ETFs usually invest in raw silver– usually silver is held physically by fund managers or a custodian bank. In essence, silver ETFs grant the investor the right to a given amount of silver that’s usually measured in ounces. Fund managers aim to mirror the spot price of silver, which is traded openly in the world commodity market. By and large, ETFs can provide investors with higher liquidity and greater safety than if they own the physical metal. In addition, access to silver ETFs is wide open—much more so than buying silver directly on the open market. Besides rising commodity prices, silver-themed ETFs offer investors greater liquidity, increased flexibility, and the chance to cash in on the commodity upturn at a substantially lower price than via direct investing.
History & Current Trends
Before we focus on specific sliver ETF, we should first analyze price of silver and the silver’s market in the past, because there was a very strong relationship between the silver price and the ETF of sliver investment. Silver prices remained under pressure for most of 2000; the