Silver ETFs Outshine Gold ETFs in 2024, Creating a New Opportunity for Precious Metals Investors

Silver’s strong performance this year has rewarded investors, with silver ETFs even outpacing gold ETFs. Unlike gold, which primarily acts as a safe-haven asset, silver has benefited from both investment demand and growing industrial use, driving its recent surge.

SLV and SIVR Lead Silver ETF Gains

The iShares Silver Trust (SLV) and Abrdn Physical Silver Shares ETF (SIVR) have each gained about 35% this year, outpacing even the SPDR Gold Trust ETF (GLD), which rose around 32%. Experts, like Heritage Capital’s Paul Schatz, point out that silver’s recent catch-up to gold aligns with its historical price behavior, driven by silver's higher volatility and speculative appeal.

Silver’s Dual Role: Safe Haven and Industrial Metal

While gold is mainly valued for its stability, silver’s dual role—as a safe asset and an industrial material—has boosted its demand. Applications in renewable energy and electronics have contributed to its price rise, and limited supply may further support silver’s momentum. As global uncertainties grow, silver’s higher volatility is drawing more risk-tolerant investors.

Investment Strategy: Can Silver ETFs Continue Their Run?

At around $33 per ounce, silver remains below its 2011 high of $50. Schatz suggests that if a new precious metals rally emerges, silver might test or surpass this peak, potentially creating a strong buying opportunity. Still, some investors, like AHP Financial’s Tim Holsworth, advise caution given the sector’s volatility.

Rising ETF Inflows Reflect Investor Interest

In the commodities ETF space, GLD leads with over $2 billion in inflows this year, but SLV’s inflows of $1.4 billion show rising interest in silver ETFs. This suggests that, while both gold and silver have been attractive, investors are increasingly drawn to silver’s potential.

Conclusion: Silver ETFs May Be the Next Big Thing in Precious Metals

With high volatility and dual demand, silver ETFs have become the highlight of the precious metals market in 2024. For investors with a greater risk appetite, silver ETFs could be an appealing choice. However, the path forward depends on market stability and price movements, which require close attention as the Federal Reserve and global uncertainties continue to shape the landscape.

$白银ETF(iShares)(SLV)$ $SILVERspac Inc(SLVR)$ $SPDR黄金ETF(GLD)$ $SPDR Gold MiniShares Trust(GLDM)$

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