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Yahoo
3 days ago
- Business
- Yahoo
ETFs Riding High on Multi-Year Record Silver Prices
Silver soared to its highest level in more than a decade, topping $35.90 per ounce — a level not seen since February 2012. The rally comes amid a weakening U.S. dollar, heightened global trade uncertainty and rising interest in precious metals as geopolitical and economic hedges. Silver has risen 24% so far this miners also spiked, as they are the biggest beneficiaries of a surge in silver prices. These act as leveraged plays on underlying metal prices and thus tend to experience more gains than their bullion cousins in a rising metal market. Investors seeking to tap the rally could consider ETFs like iShares Silver Trust SLV, abrdn Physical Silver Shares ETF SIVR, Global X Silver Miners ETF SIL, ETFMG Prime Junior Silver ETF SILJ and iShares MSCI Global Silver and Metals Miners ETF SLVP. The silver surge mirrors the recent rally in gold, with both precious metals benefiting from investor anxiety surrounding President Trump's evolving tariff agenda. Silver futures for July delivery jumped more than 4% on Thursday, riding a wave of momentum that analysts say has been building for months. 'The breakout has been brewing for a while,' said Maria Smirnova, CIO at Sprott Asset Management. 'Silver had attempted to breach the $35 threshold several times recently. This move is technically significant and could ignite a wave of physical buying that accelerates the rally.' A major tailwind for silver is the sustained supply deficit in recent years. The silver market is heading for the fifth year of deficit, driven largely by surging industrial demand, particularly from the green energy and electronics sectors. Per the Silver Institute industry association, total silver demand is expected to reach 1.148 billion ounces this year, while supply is forecast at just 1.030 billion ounces. Silver is often used to preserve wealth during times of financial and political uncertainty and usually does well when other asset classes struggle. Geopolitical tensions and ongoing uncertainty over the Trump administration's trade policies enhance the metal's attractiveness among investors (read: Tap Income ETFs Amid Trump Tariffs' Legal Trouble). Silver is benefiting from its dual role as both an investment asset and an industrial metal. The white metal is used in a wide range of industrial applications. About half of the metal's total demand comes from industrial applications, while 30% comes from jewelry/silverware/coins and medal manufacturers. Additionally, the global push for green energy, increasing demand in areas like 5G, a rebound in global computer shipments, the photovoltaics (PV) and automotive industries and new sources of demand for sensors used in IoT and OLED lighting will continue to boost silver demand. Silver is largely used for manufacturing solar panels and electric vehicles, and will play a key role in the shift to 5G wireless network technology. The gold-to-silver ratio has tightened sharply from around 105 in April to approximately 94 by early June, indicating silver is outperforming gold. Since gold has also seen strong inflows (up 29% year to date), this shift added fuel to silver ETF flows (read: Gold Eyes Best Week in a Month: Will ETFs Sustain the Rally?). Another crucial factor behind silver's rally is the weakness in the U.S. dollar. The dollar index has declined steadily over recent weeks, driven by growing concerns over America's fiscal trajectory. President Trump's newly passed tax bill, which raises the debt ceiling by $4 trillion, has added to investor anxiety over ballooning federal deficits. As the greenback loses value, dollar-denominated assets like silver have become more attractive to foreign have discussed the abovementioned ETFs here:iShares Silver Trust (SLV) iShares Silver Trust offers exposure to the day-to-day movement of the price of silver bullion. It is an ultra-popular silver ETF, with an AUM of $16 billion and a heavy volume of 15 million shares a day. It charges 50 bps in fees per year from Physical Silver Shares ETF (SIVR) abrdn Physical Silver Shares ETF tracks the performance of the price of silver less the Trust expenses. It has an AUM of $1.8 billion and trades in a good volume of around 628,000 shares per day on average. SIVR has an expense ratio of 0.30%.Global X Silver Miners ETF (SIL) Global X Silver Miners ETF provides investors access to a broad range of silver mining companies by tracking the Solactive Global Silver Miners Total Return Index. It holds 40 stocks in its basket with a double-digit concentration on the top two firms. Global X Silver Miners ETF has managed assets worth $1.7 billion and trades in a good volume of about 1.4 million shares a day. It charges 65 bps in annual Prime Junior Silver ETF (SILJ)ETFMG Prime Junior Silver ETF is the first ETF to target small-cap silver miners. It provides direct exposure to the small-cap silver mining exploration and production industry by tracking the Prime Junior Silver Miners & Explorers Index. ETFMG Prime Junior Silver ETF holds 56 stocks in its basket, with Canadian firms taking the lion's share at 57%, while the United States takes 18% exposure. It has managed assets worth $1.3 billion and trades in a good volume of nearly 3 million shares a day. It charges 69 bps in annual fees (see: all the Materials ETFs here).iShares MSCI Global Silver and Metals Miners ETF (SLVP)iShares MSCI Global Silver and Metals Miners ETF follows the MSCI ACWI Select Silver Miners Investable Market Index, providing investors exposure to companies that derive the majority of their revenues from silver exploration or metals mining. It holds 30 stocks in its basket, with Canadian firms making up the lion's share at 69.1%, while the United States and Mexico round off the next spots. iShares MSCI Global Silver and Metals Miners ETF has AUM of $285.7 million and an average daily volume of about 189,000 shares. It charges 39 bps in annual fees. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares Silver Trust (SLV): ETF Research Reports abrdn Physical Silver Shares ETF (SIVR): ETF Research Reports Global X Silver Miners ETF (SIL): ETF Research Reports Amplify Junior Silver Miners ETF (SILJ): ETF Research Reports iShares MSCI Global Silver and Metals Miners ETF (SLVP): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Silver prices hit 13-year high as dollar weakens amid tariff uncertainty: 'The breakout has been brewing'
Silver (SI=F) prices surged to 13-year highs on Thursday, breaking above $35 per ounce amid uncertainty over President Trump's tariff policy and the continued decline of the US dollar. Spot silver rose to climb above $35.90, its highest level since February 2012, while futures for July delivery (SI=F) jumped more than 4% to hover above $36 per troy ounce. The move follows a recent resurgence in gold (GC=F) prices, which have been driven by trade policy uncertainty and continued central bank demand buying. "The breakout has been brewing for a while," Maria Smirnova, senior portfolio manager and chief investment officer at Sprott Asset Management, told Yahoo Finance on Thursday. "Silver had attempted to break through the $35 level a couple of times in recent months, so this is highly significant." "Furthermore, if the technical move catalyzes physical investor buying, it can take silver much higher very quickly," she added. The market for silver, sitting just above an estimated $2 trillion, is much smaller than gold's more than $22 trillion. That makes the volatility in silver prices up to two to three times greater than that of gold. Read more: How to invest in gold in 4 steps The precious metal also has industrial uses, from electronics to automobile components to solar panels, making prices susceptible to any imbalance between supply and demand as the US moves to increase domestic manufacturing. "We have been talking for a while about the supply/demand deficits in silver, since 2021 there has been a cumulative 800m oz draw and the deficits are projected to continue. Silver has a very positive investment case right now," Smirnova said. A falling US dollar index ( has also sent the price of silver lower, given the inverse correlation between the greenback and precious metals. The greenback has been under pressure in recent weeks amid weariness over increased fiscal US spending as capital shifts toward currencies and stocks abroad. Trump's proposed tax bill, which is said to raise the debt ceiling by $4 trillion, passed the House last month. Year to date, silver is up more than 23%. Gold has risen 29% over the same period. To be sure, StoneX head of market analysis Rhona O'Connell pointed out that silver is "notoriously volatile and it is fully capable of dropping" as sharply as it rises. "This is not necessarily a false move," O'Connell said, "but it is now heavily overbought and should, as always when silver does this sort of thing, be treated with caution." Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices
