The prospect of interest rate cuts this month and through the rest of the year is elevating prices for gold, but silver is also benefiting. The precious/industrial metal crossed the $40 price mark in the first week of September, which it hasn’t done since 2011.

Silver is also reaping the benefits of a move into safe haven assets as market uncertainty continues to loom over the capital markets. Stubborn and sticky inflation hints that the economy is still running hot. That also helps silver, since it can move with strength in the broader economy.

Investors who find this safe haven-industrial metal appealing should consider exposure via the Sprott Physical Silver Trust (PSLV). The fund invests in unencumbered and fully allocated London good delivery silver bars, and for additional investment flexibility, shareholders can redeem their shares for physical bullion anywhere in the world (subject to certain minimum conditions).

Given silver’s conductivity properties, it can also benefit in global electrification as demand for electricity rises. In turn, this can prop up silver demand and thus, increase the need to bolster mining operations. As such, consider silver mining exposure with the Sprott Silver Miners & Physical Silver ETF (SLVR). The fund tracks the performance of the Nasdaq Sprott Silver Miner Index. This index mimics the performance of the industry. That includes producers, developers, and explorers, as well as silver itself. Having a selection of holdings in the convenience of an ETF wrapper mitigates overconcentration risk of one or a few silver mining stocks.

Combining Gold & Silver Exposure

With gold continuing to hit record highs, investors may like the future prospects of silver, but also want to maintain a position in gold. They can get combined exposure with the Sprott Active Gold & Silver Miners ETF (GBUG).

GBUG specifically adds both gold and silver mining exposure with actively managed holdings. As such, the fund allows portfolio managers to tailor its holdings to suit market conditions that are privy to both metals.

Furthermore, the diversification may be beneficial to a portfolio. When silver falters and gold exhibits strength or vice versa, exposure to both metals could offset any opposing market forces. This adds an inherent hedging component in the fund.

Under the hood, GBUG holds companies engaged in mining, developing, exploring, and financing operations in relation to gold and silver. Country exposure also adds to the potential diversification benefits of the fund. 70% of the fund’s holdings can be found in Canada. Meanwhile, the rest is spread over the U.S., Australia, and Great Britain. This allows the fund to capture potential global upside in mining opportunities, and overall precious metals exposure in the two primary avenues: gold and silver.

“Fed rate cuts, a weakening USD, rising ETF inflows and better Indian imports should all be supportive for gold and silver,” Morgan Stanley analysts Amy Gower and Martijn Rats told Bloomberg.

For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.

An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below.

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.