The strength of the rally in gold prices is outpacing that of silver so far this year. But here could be a rally waiting in the wings for the white metal.
The precious/industrial metal is already showing signs of a rally. It’s largely sloughing off the tariff volatility en route to regaining the upward trajectory it started with at the beginning of the year. Per a Kitco News report, Florian Grummes, managing director of Midas Touch Consulting, foresees a rally that could come as early as this summer.
“Everything is on the table now,” Grummes said. He noted the significance of silver’s price movements as of late. “I believe we are going to see prices around $40, maybe even $50. Silver is extremely undervalued.”
With upside for the precious metal ahead, investors seeking to get exposure should definitely take a look at the Sprott Physical Silver Trust (PSLV). The fund provides exposure to silver without the logistical hassle of storing the physical metal.
The fund invests in unencumbered and fully allocated London good delivery silver bars. Additionally, shareholders can redeem their shares for physical bullion anywhere in the world (subject to certain minimum conditions) if they want a more tangible investment experience.
Gold and Silver Exposure
Unlike silver, gold exposure is typically relegated for investors looking for a store of value. Ideally, this is to provide a tangible hedge against macroeconomic conditions like inflation and a declining dollar or as a safe haven when the equities market goes haywire. Investors seeking the benefits of both gold and silver can look to funds like the Sprott Active Gold & Silver Miners ETF (GBUG). This fund can provide dual exposure.
When gold and silver move toward the upside, mining stocks can typically follow. Furthermore, mining stocks can exhibit a latency effect. That allows investors to build positions after the physical metal has already experienced price gains. And that is where the exposure of GBUG potentially becomes beneficial.
Another prime benefit of GBUG is its active management. That can be a boon during times of heavy market volatility, like now. Portfolio managers of GBUG can adjust the holdings of the fund based on current market conditions. That allows for pliability in the precious metals space. GBUG contains holdings of companies engaged in, among others, mining, developing, exploring, and financing operations in relation to gold and silver. For those looking to maximize diversification in these metals, this is an ideal fund.
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 USA, Inc. or VettaFi.
Exchange Traded Funds (ETFs): GBUG, SLVR, SETM, LITP, URNM, URNJ, COPP, COPJ, NIKL, SGDM and SGDJ
