Over the past, one-month silver has appreciated by 12% double the amount that was expected for gold and considerably raising the stakes of investing in them through ETF’s. ETF guru Eric Balchunas said in an interview on Bloomberg that the recent resurgence of Silver in the market is only a catch up game that the precious metal is playing considering it has been down by 41% over the past three years. Some of the ETF’S that have helped silver grow over the past few months are Silver Trust (NYSEARCA:SIVR), iShares Silver Trust (ETF) (NYSEARCA:SLV), PureFunds ISE Jnr Slvr Cp (Sm Cp Mnr/Exp) ETF (NYSEARCA:SILJ) and ETFS Physical White Metals Baskets Shares (NYSE:WITE).
Despite being 12% up this year, Silver is still 25% less than Gold and 100% less than the market. The fact that Silver is cheap at the moment according Balchunas is what is driving prices high taking into consideration increased demand. “If you go back and look at the past three years, Silver is down 41% even with a little bump this year, now that is 25% less than Gold 100% less than the market,” Said Mr. Balchunas.
Silver Trust (NYSEARCA:SIVR) is not the most popular ETF despite being cheap; iShares Silver Trust (ETF) (NYSEARCA:SLV) is, on the other hand, more popular according to Balchunas. Silver Trust (NYSEARCA:SIVR) stores its silver bars in London and charges 30-basis points whereas iShares Silver Trust (ETF) (NYSEARCA:SLV) charges 50-basis points, which is why SIVR is a bit cheaper than SLV.
Another popular ETF for trading silver as ETF’s is ETFS Physical White Metals Baskets Shares (NYSE:WITE) that consists of 35% platinum, 15% palladium and 50% silver, in this way diversifying the trading of silver.
“This thing diversifies silver a little bit cause silver is all sorts of trade. This will bring your volatility down a little bit and get things like palladium which is up to 25% down this year maybe give it a little bump, so it is kind of a different way to get your silver exposure in a diversified manner,” said Mr. Balchunas.
The fact that ETFS Physical White Metals Baskets Shares (NYSE:WITE) has Palladium in its trading portfolio has enabled it perform well as a silver ETF, due to diversified trades. PureFunds ISE Jnr Slvr Cp (Sm Cp Mnr/Exp) ETF (NYSEARCA:SILJ) is another ETF for trading silver that is 50% up to date this year and the second best performing ETF overall, while also being the most volatile.