πππWhile Gold prices have been rising recently, Silver has also followed. These 2 precious metals are a good hedge against high inflation.
A big catalyst for silver demand is the energy transition to a low carbon economy. Silver is the best conductor of heat and electricity. Silver is a key material used in manufacturing EVs and solar panels. Silver can also be used as a safe haven asset like Gold in times of geopolitical conflicts and financial market downturns.
$iShares Silver Trust(SLV)$ gives investors direct exposure to Silver as it holds the precious metal in secured vauts in London. As such, investors get exposure to Spot Silver.
SLV is the largest Silver ETF with Assets Under Management of USD 11.84 billion. The Fund Manager is BlackRock, the largest fund manager in the world.
The expense ratio is 0.50%. SLV tracks the London Bullion Market Association or LBMA Silver price.
Performance wise, even though SLV is down 1% today, it is up 3.5% in the past 5 trading days. SLV has now risen by 17.5% year todate, much faster than $SPDR S&P 500 ETF Trust(SPY)$
There is a supply deficit that is growing in the physical silver market due to its demand in the production of EVs and solar panels as the world transitions to green energy. Forecasts point to a 4th straight yearly deficit in global supplies.
I am bullish on $iShares Silver Trust(SLV)$ and believe that it has exponential growth ahead as global silver demand is forecast to climb by 1% to 1.2 billion ounces this year. This is the 2nd highest on record due to its strong demand. According to analysts USD 35 to USD 50 silver prices may become a possibility in 2024.
I like $iShares Silver Trust(SLV)$ as it is a simple way to gain exposure to silver without owning the physical precious metal and I can just trade it like any ETF.
Silver maybe known as "poor man's gold", a cheaper alternative to gold but it maybe silver's turn to shine.
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