With gold prices surging in recent weeks, it’s fair to assume that many advisors and investors are keeping close watch on where the precious metal goes from here. However, silver is also benefiting from the upswing and has its own additional tailwind that should not be overlooked.
Key Takeaways:
- Gold is seeing plenty of market attention amid its new rally, but silver may warrant increased focus as well.
- Silver is also benefiting from favorable fiscal policy, but simultaneously offers key industrial applications that operate as a separate tailwind.
- The Sprott Silver Miners & Physical Silver ETF (SLVR) can help advisors and investors gain focused access to both silver miners and physical silver.
The current excitement around gold’s potential is certainly well-founded. The precious metal was already starting on an upward trajectory when the U.S.Treasury Department announced a significant increase in longer-dated bond buybacks, causing gold prices to skyrocket further.
But investors focused solely on gold may be missing out on the opportunity in silver. Much like gold, silver’s price has also been on the upswing, partially fueled by the U.S. Treasury announcement. However, unlike gold, silver has potent physical applications that can help it stand out from the crowd.
“Demand continues to grow from solar power, electrification, artificial intelligence infrastructure, advanced electronics and electrical grid investment, while mine supply has struggled to keep pace,” said Maria Smirnova, MBA, CFA, Senior Portfolio Manager & Chief Investment Officer at Sprott Asset Management. “The result has been several consecutive years of structural market deficits that continue to draw down above-ground inventories.”
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SLVR Can Tap Into Silver’s New Momentum
This dynamic gives silver a compelling set of opportunities to draw from. Not only can the metal see momentum from fiscal policy, but silver’s industrial use cases helps to ensure its place in the global conversation.
All of these factors could bode well for the Sprott Silver Miners & Physical Silver ETF (SLVR). The fund offers pure-play exposure to the sector, investing in both silver miners and physical silver bullion.
Investors looking to capitalize on silver’s long-term opportunity set may want to give a fund like SLVR a closer look. Not only can it help foster a more diversified portfolio, targeted silver exposure provides a direct line to ride the metal’s favorable long-term tailwinds.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.
Disclosures
An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a Sprott Silver Miners & Physical Silver ETF Statutory Prospectus, which contains this and other information, visit https://sprottetfs.com/slvr/prospectus, contact your financial professional or call 1.888.622.1813. Read the Prospectus carefully before investing
Past performance is no guarantee of future results. One cannot invest directly in an index.
Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance.
Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc. or VettaFi.
Exchange Traded Funds (ETFs): SETM, LITP, URNM, URNJ, COPP, COPJ, NIKL, SGDM, SGDJ, SLVR, GBUG, METL, and REXC.
Physical Bullion Funds: PHYS, PSLV, CEF, and SPPP.
Gold and precious metals are referred to with terms of art like store of value, safe haven and safe asset. These terms should not be construed to guarantee any form of investment safety. While “safe” assets like gold, Treasuries, money market funds and cash generally do not carry a high risk of loss relative to other asset classes, any asset may lose value, which may involve the complete loss of invested principal.
