Silver Commodity

Silver commodity ETFs and mutual funds invest the majority of their assets... Silver commodity ETFs and mutual funds invest the majority of their assets in physical silver or silver futures contracts. These funds aim to provide exposure to investors who believe the price of silver is heading higher. Silver commodity ETFs and mutual funds tend to be passively managed. The most common type of silver commodity fund invests in the physical metal itself. These funds store metal in secure vaults on behalf of investors. For over a decade and a half, physical silver funds have come to play a central role in how investors access the silver market. In turn, demand for these funds has also come to play a big part in the direction of the price of silver. When demand for silver funds is high, they stockpile a large quantity of bullion and send the silver price higher. When demand for silver funds is low, they liquidate some of these holdings, which has a depressing impact on the silver price. Some silver commodity funds only own silver futures contracts. These are derivatives that are tied to the price of silver. Silver futures usually move in lockstep with the price of physical silver, but there can be times when it’s more profitable to own futures than physical, and vice versa. Investors are attracted to silver as an inflation hedge, a bet on industrial demand for silver, and as a leveraged play on gold, given that silver tends to be the more volatile of the two metals. Last Updated: 04/26/2024 View more View less

Silver commodity ETFs and mutual funds invest the majority of their assets in physical silver or silver futures contracts. These funds aim to provide exposure to investors who believe the price of silver... Silver commodity ETFs and mutual funds invest the majority of their assets in physical silver or silver futures contracts. These funds aim to provide exposure to investors who believe the price of silver is heading higher. Silver commodity ETFs and mutual funds tend to be passively managed. The most common type of silver commodity fund invests in the physical metal itself. These funds store metal in secure vaults on behalf of investors. For over a decade and a half, physical silver funds have come to play a central role in how investors access the silver market. In turn, demand for these funds has also come to play a big part in the direction of the price of silver. When demand for silver funds is high, they stockpile a large quantity of bullion and send the silver price higher. When demand for silver funds is low, they liquidate some of these holdings, which has a depressing impact on the silver price. Some silver commodity funds only own silver futures contracts. These are derivatives that are tied to the price of silver. Silver futures usually move in lockstep with the price of physical silver, but there can be times when it’s more profitable to own futures than physical, and vice versa. Investors are attracted to silver as an inflation hedge, a bet on industrial demand for silver, and as a leveraged play on gold, given that silver tends to be the more volatile of the two metals. Last Updated: 04/26/2024 View more View less