ETF Silver or Exchange Traded Funds are going to glitter in 2011 driven by the investor appetite for silver bullion products. A massive surge in investment demand for Silver ETFs in 2010 points to a lucky inning for silver in the New Year.
According to a report from BNP Paribas, Silver ETF inflows and other implied investment in silver bullion stand at 103 million ounces this year. BNP sees a surge in Silver ETF investment in 2011.
Investment demand in silver has increased with the advent of exchange-traded funds and the most popular of those are usually physically backed, meaning they will buy metal and store it in secure vaults. As easily as that metal can go into storage, it can come out, causing swings in physical supply.
As of mid-December silver held in exchange-traded funds reached a record 15,251 metric tons. One metric ton equals 32,150 troy ounces, so that calculates to over 490 million ounces held.
CPM Group forecasts silver mine production in 2011 at 769.8 million ounces.
As the year nears to a close, it is apt to check out which among the precious metals has been the shining commodity of 2010. Of course, gold?the hottest commodity around?has been glittering throughout this year. But silver and exchange traded funds (ETFs) in silver have outshone Gold ETFs in 2010.
As the bull run in commodities continues, a lot has been written about silver, the poor man?s gold. The price of the white metal touched 30-year high in 2010, as industrial and investment options for silver has been increasing.
According to precious metals expert Jeffrey Christian, CEO of CPM Group in New York, silver is the hottest commodity around these days because ?it is an industrial metal in short supply and with tighter supplies than gold.?
?There are a couple of billion ounces of bullion in world gold reserves; about half held by central banks, the other half held by investors. Silver doesn’t have those kinds of stocks lying around in bullion form any more, and that makes it a lot more interesting,? pointed out Christian.
ETFs in commodities are the latest investment craze by people across continents. While Gold ETFs have bagged headlines in 2010, Silver ETFs have not been far behind as investors bullish on the white metal have been pumping money into the exchange traded funds in silver.
Precious metals experts say that since silver price is very volatile, gains out of investing in the metal has been solid compared to gold. Investors in 2010 have reaped rich dividends?upto nearly 70%–out of putting their money in leading global silver ETFs like IShares Silver Trust, ProShares Ultra Silver etc.
According to latest data, the Silver ETF in iShares Silver Trust has jumped by an unprecedented 70% this year, driven by the investor fascination and confidence for silver. By comparison, the SPDR Gold Trust, the world?s largest gold fund, clocked only around 285% appreciation for investors.
Following are some of the hottest Silver ETFs dominating the silver investing market globally:
iShares Silver Trust Fund (SLV)
E-TRACS CMCI Silver ETN (USV)
ETFS Physical Silver Shares ETF (SIVR)
PowerShares DB Silver Fund (DBS)
ProShares Ultra Silver ETF (AGQ)
ProShares UltraShort Silver ETF (ZSL)
COMEX Silver Bear Plus ETF (HZD-TSX)
COMEX Silver Bull Plus ETF (HZU-TSX)
COMEX Silver ETF (HUZ-TSX)
ETFS Leveraged Silver ETF (LSIL-LSE)
ETFS Physical Silver ETF (PHAG-LSE)
ETFS Physical Silver Sterling ETF (PHSP-LSE)
ETFS Short Silver ETF (SSIL-LSE)
ETFS Silver ETF (SLVR-LSE)
Silver for immediate delivery rose 0.9 percent to $29.5013 an ounce. Silver holdings in exchange-traded products, or ETPs, were unchanged at 15,073 metric tons yesterday, data from four providers show. Holdings reached 15,172 tons on Dec. 17, the highest level since at least February.
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