Why Are Investors Interested In Silver ETFs?


Why Are Investors Interested In Silver ETFs?

Investors are continuing to invest in silver exchange traded funds (ETFs) even though the silver prices are rising. ETFs are investment funds that are traded on stock exchanges, which are made up of different types of assets like stocks, bonds, and commodities. They generally operate with an arbitrage mechanism that is designed to keep silver trading close to its net asset value. Arbitrage is the process of buying and selling an asset in different markets in order to take advantage of the price differences.

June sees a huge rise in silver investing

June, this year, saw a high rise in the number of silver ETF holdings; in fact so high that these holdings rose even higher than the total silver mined worldwide in the entire month! This clearly shows how investors are so interested in the white metal, despite its rising prices. So, what is it that is making investors so much interested in this metal?

How much silver has been invested in?

Silver is living up to the reputation that it holds of being volatile. The largest silver backed ETF, New York’s iShared Silver Trust, rose by 0.5% in between the 23rd and 24th of July. Totaling the holdings of the entire year, the holding of this trust has risen nearly about 13%, which amounts to more than 20.721 tonnes, being one of the best purchasing years for them. Let alone the iShared Silver Trust, silver ETFs have seen inflows of almost 2000 tonnes on the whole! This is equal to more than a month’s worth of mining production!

Why is gold less preferred?

You can see how it has been a great time for investing in silver. In fact, the metal has been outperforming gold. So, you must also take up this opportunity and invest in silver, as much as you can. Unlike gold, silver is a much cheaper alternative, which has made so many investors interested in it. Gold is so expensive that only big time investors can invest in huge amounts of gold. On the contrary, silver is so affordable that one can easily invest in big amounts. If you compare the current prices of both the metals, gold is priced at Rs. 3559 per gram and silver is priced at only Rs. 47.26 per gram today.

How to invest in silver?

Silver is thus the best option to invest in; and you can do so in a variety of ways. You may invest in simple silver coins and bars, or complex silver jewellery and articles.

  • Silver coins and bars are the best ways to invest, in options of 10, 20, 50, 100, 500, and 1000 grams. These can be stored easily at home. And, when looking for a gift for someone special, you could also gift them the same.
  • Silver jewellery is what you can invest in and use at the same time. Whether you want to opt for single items like earrings, chains, rings, bracelets, and anklets, or a complete jewellery set, the choice is yours.
  • Silver articles are another great investment option. Buy Puja items or silverware and store them easily at home. These are also great gifting options for your loved ones. You can get the best silver articles in Bangalore at Aura Jewels,