Exchange-traded funds are the new way of gaining exposure in the ever-growing financial markets. There are many reasons why investing in exchange-traded funds has exponentially increased in the past few years. The most fundamental reason is that now it is possible for even beginners to invest in the best ETFs with as little as $10. Suddenly, there are new types of ETFs available such as a few of the best silver ETFs.
A silver exchange-traded fund allows you to gain exposure to silver prices via actual stores of silver or some derivatives. In case you are new to the idea of investing in the best silver ETFs but cannot pick the right one then here is a list of the best-performing silver ETFs.
iShares Silver Trust SLV
The SLV fund is issued by Blackrock and it has been in the market since 2006. This grantor trust type silver ETF is considered one of the most profitable ones for investment purposes and its total AUM is $12.45 billion.
Aberdeen Standard ETFs
Abbreviated as SIVR, it tracks the silver spot price with fewer trust expenses and uses silver bullion. The issuer, Aberdeen Plc., launched the SIVR back in the year 2009 and since then its AUM has risen to $985.13 million.
ProShares UltraShort Silver
This inverse product of silver ETF is recognized by the symbol of ZSL which was issued in 2008 by ProShares. It delivers 2x of the daily silver prices. Its inverse exposure is benchmarked to the price performance of the Bloomberg Silver Subindex.
Why Invest in Silver ETFs This Year?
Just like gold, silver has been an international unit of exchange in every era. These precious metals are trusted by a variety of investors who flock towards them during times of economic uncertainty. In the same way, the best silver ETFs are considered a safe haven which also has a plethora of industrial purposes.
So why exactly should an investor invest in the best silver exchange-traded funds now? Read on to find out to discover why one should invest in the available silver ETFs that provide exposure to investors:
- The advent of 5G
According to experts, the eventual rollout of a 5G connection can help increase the demand for silver. The reason why it is such a positive indication for silver is due to the fact that the components of the 5G technology greatly depends on silver. For centuries, silver has had a significant role to play in electronic applications and it remains unchanged even in the present.
With the usage of a 5G connection, it is forecasted that the silver applications in the tech sector would exponentially increase by March 2025. There are chances that it would jump 206% higher from the current level. These predictions were shared in the report from the Silver Institute.
- Cheaper valuation
There is no denying that silver, however, has a multitude of purposes, is far cheaper than some other metals and commodities. This makes it easy for silver prices to rise in the year 2022 according to several precious metals experts.
Due to the role, it plays in new and emerging tech like green energy and IoT, industries would prefer silver with cheaper valuation than finding any alternative. Investing in the best silver ETFs would be a smart thing to do because then investors would be able to profit from the incoming rise in silver prices which lagged gold in the past.
- Industrial importance
Within several industries, silver is not considered just another precious metal that is non-malleable. It is also a fine industrial metal which represents 50% of the metal’s total demand. About 30% of silver’s total demand comes from coins, silverware, and jewellery manufacturers. But the good news is that for some time now, the industrial demand for silver is on the rise.
The existence and propagation of green energy is the primary reason for the jump in industrial applications of silver. Several companies are using silver for electric vehicles and solar power applications. Even computers make use of silver and the growing demand for IoT could also mean that silver’s demand would go up in global computer shipment and the PV industry.