Is now the time to consider hopping back into silver investing? Sure, the precious metal may tend to be a bit more volatile than gold, but it is certainly offering a compelling value proposition for the months to come.
Key Takeaways:
- Silver’s price has gone up and down in recent months, but the long-term factors working in favor of the metal look highly consistent.
- The precious metal provides many applications, including working as a store of value, inflation hedge, and critical industrial component.
- The Sprott Silver Miners & Physical Silver ETF (SLVR) offers flexible access to the silver mining industry and physical silver, which can help portfolios looking to capitalize on silver’s long-term opportunities.
Part of this value proposition comes from the hybrid applications that silver offers. First, much like gold, silver can operate as a store of value. When the economy and markets enter shaky ground, advisors and investors can turn to silver to help preserve their cash over the long-term, especially amid inflation.
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Furthermore, silver also has critical practical uses, which helps differentiate the metal from gold. Silver is employed in the construction of microchips, solar energy, medical equipment, and more. Silver’s industrial applications are closely tied to the AI boom, which can also offer a long-term tailwind for the metal.
These dual use cases can help propel silver’s value over the long-term. Despite recent price fluctuations, ongoing inflation worries and the stable AI buildout can continue to work in favor of the metal.
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Tapping Into the Silver Buy Opportunity With SLVR
Those who have kept an eye on silver’s price in recent months have known it has certainly been fluctuating. The recent price of silver is noticeably lower than its January highs, which can create a good opportunity for folks to buy into the dip this summer.
The Sprott Silver Miners & Physical Silver ETF (SLVR) could provide an attractive means for maintaining exposure to the silver industry. True to its name, SLVR invests in a mixture of silver miner companies, along with physical silver itself. This blended exposure can help portfolios tap into silver’s long-term opportunities from multiple avenues of growth.
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For those who are betting on opportunities within the silver industry, SLVR could offer an attractive way forward. And considering that inflation and AI adoption are likely not going away any time soon, the best may very well be yet to come for this precious metal.
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 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.
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, URN, 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.
