Silver’s gain of over 20% in 2024 could be seen as the proverbial “Cinderella Story” alongside gold’s rise. However, its duality as a precious and industrial metal could see the fairy tale narrative continuing this year.
Stubborn and sticky inflation could serve as the antagonist. A slower pace of rate cuts could mean that the dollar’s strength could apply downward pressure on precious metals. However, as the push towards electrification and other means of alternative energy continues, silver’s industrial metal usage could overcome any unfavorable macroeconomic conditions.
“Sometimes unkindly referred to as the ‘cinderella metal’ (because it often misses the ball) … silver did receive the memo in 2024 and posted a solid 33% gain on the year,” said Ross Norman, CEO of Metals Daily. “Arguably though, it should have done even better because, as gold’s alter ego, it would typically be expected to significantly outperform during the seismic shift these metals are seeing.”
No longer gold’s sidekick, investors may be mulling options of how they can take advantage of silver’s strong prospects.
Silver or Silver Miners? One Solution
When deciding on the type of exposure for silver as a portfolio diversification tool, investors have a plethora of options. Physical silver is ideal, but silver miners can also provide exposure indirectly. Not sure which to choose? How about both, via one solution: the Sprott Silver Miners & Physical Silver ETF (SLVR).
SLVR melds exposure to physical silver while also achieving equities exposure to companies that provide ancillary services that support the mining industry. It’s an all-encompassing solution for those seeking a diversified way to capitalize on silver’s dynamic nature as a store of value and an industrial metal with a strong growth trajectory given its usage in a variety of applications.
“Silver is one of the world’s best-known precious metals, and we believe it’s positioned to perform well in today’s market. In addition, demand for silver is growing in applications ranging from clean technology and solar energy to the automotive and healthcare industries. We believe silver and its miners have significant investment potential, as silver is both a precious metal and an industrial metal critical to new energy,” said John Ciampaglia, CEO of Sprott Asset Management, in a press release for SLVR.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel.
An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below.
Past performance is no guarantee of future results. One cannot invest directly in an index. Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance.
Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management LP or VettaFi.
Exchange Traded Funds (ETFs): SETM, LITP, URNM, URNJ, COPP, COPJ, NIKL, SGDM and SGDJ
