The Best Silver ETFs For A 2021 Rally

NYSE: SLV | iShares Silver Trust News, Ratings, and Charts

Silver has experienced an unprecedented rise this year thanks to the COVID-19 pandemic. It has gained 42.2% over the past year as rising market volatility and a weakening U.S. dollar have incentivized investors to hedge their investments by taking positions in silver among other safe-haven assets.

A recently discovered new strain of coronavirus has increased financial market volatility, and many analysts predict another market correction in the near term. The CBOE volatility index, which gauges market sentiment through futures and options pricing, has gained 4.5% over the past month.

The United States’ dovish monetary stance combined with rising national debt have accelerated the depreciation of the U.S. dollar. The country’s national debt has increased by nearly 200% since 2008 to $27 trillion. This, combined with a recent $900 billion coronavirus relief package signed by the Congress (but yet to be signed by the President), has placed enormous pressure on the currency, motivating many investors to exit the greenback in favor of assets that will hedge their investments against such risks.

The ongoing global clean-energy drive bodes well for silver. The metal is a good conductor of heat and electricity and it possesses light sensitivity. It has huge applications in the solar panel and battery industries. President-elect Joe Biden’s $2 trillion Green New Deal proposal will likely bolster the demand for silver significantly.

As such, ETFs such as iShares Silver Trust (SLV - Get Rating), Aberdeen Standard Physical Silver Shares ETF (SIVR - Get Rating), and ETFMG Prime Junior Silver ETF (SILJ - Get Rating), which all have direct exposure to the precious metal, should grow significantly we believe in light of recent public health and governmental fiscal developments, and rising industrial demand.

iShares Silver Trust (SLV - Get Rating)

SLV is a commodity ETF that invests in silver bullion. With $14.27 billion in assets under management (AUM). SLV closely tracks the London Silver Fix price to determine its underlying asset value. The ETF was created primarily to allow investors to hedge their broader portfolios against inflation risk; it also acts as a hedge against volatility.

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