While most investors are well aware of gold’s unprecedented march fewer are familiar with the yellow metal’s often overlooked cousin, silver. However many big investors consider the metal to be a sound investment due to robust industrial demand, its traditional role as a store of value, and its current ratio compared to gold. In any case, silver ETFs are an efficient way to invest in the metal without dealing with expenses of holding a physical amount of silver in your possession.
Silver is a very versatile metal; it’s not only popular in jewelry, but it has a wide range of industrial applications that put it in a prime spot to benefit in the recovery. It’s an excellent conductor of electricity and is popular in water purification, as well. Silver is also fast becoming a critical component of emerging technologies that will undoubtedly be critical to life in the 21st century. Silver plays a crucial role in solar technology, finding its way into 90% of all crystalline silicon photovoltaic cells, as well as silver embedded bandages and water purification devices.
On April 28th, 2006, Barclays launched the first silver exchange-traded fund in the US. named iShares Silver Trust (SLV) traded on the AMEX as SLV, the iShares Silver Trust was eagerly anticipated by silver investors ahead of its birth. When SLV was born in late April 2006, it had 21m ounces of silver stored in trust. But this highly anticipated ETF proved hugely popular and SLV demand growth far exceeded that of silver itself. So SLV’s custodians issued more shares and used this cash to buy more silver to equalize this imbalance. Just two weeks after launch, SLV’s holdings had more than tripled to 65m ounces. SLV is backed by phyiscal holdings of silver, with $5.5 billion in assets, and the fund has an expense ratio of 0.5%. Historically, when gold prices increase, so do silver prices. However, silver has industrial applications, which makes it less volatile than gold. SLV’s trading volume should also offer insights into how its popularity is growing and how silver-price movements affect the psychology of stock traders owning SLV. Not surprisingly, the volume trends in SLV are very similar to GLD’s in its own first couple years.
SLV ValuationVisit http://www.worldmarketpulse.com for the complete article or simply Click Here
EPS: $-3.07
P/E: -5.7752
Relative Strength: 86
Relative Strength Ranking: 0.0478
Short Volume: 0
Options Available: 266
Exchange: NYAR
Everyone is looking at gold ETF but i think Silver can also be a very good investment option. How abt comparing gold etf's and stocks of gold mine companies?
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