Silver’s year-to-date gain is even outshining its golden peer. Furthermore, silver’s historic bull run could just be getting started.
Finbold, in particular, noted that silver reached a 12-year high and more upside could be on the way despite an inflationary environment. Furthermore, as they explained, silver can serve as a hedge against inflation similar to gold’s function as a store of value1.
“If markets enter a recession, the shimmering metal’s role as a store of value and a hedge would serve to support high prices,” Finbold explained. “If that doesn’t happen, silver’s outsized returns over the past two years will continue to attract new investors looking to profit.”
To add to that, silver also serves a dual purpose as an industrial metal. With a heavier emphasis on alternative energy sources such as electricity, silver’s use will be paramount in producing clean energy technology. This also gives silver a growth component that can thrive with the increased demand for clean tech.
While silver bullion is an option for investors who want to get in on the silver action, there are other alternatives. Namely, the Sprott Physical Silver Trust (PSLV ). Furthermore, PSLV provides exposure to the precious metal without the additional hassle of storing it. It invests in unencumbered and fully allocated London Good Delivery (LGD) silver bars. For added flexibility for those who want a more tangible investment experience, shareholders can redeem their shares for physical bullion anywhere in the world (subject to certain minimum conditions).
Investors may like the upside of silver but are also drawn to gold’s store of value. In that case, there are options.
Dual Gold & Silver Exposure
Investors considering silver exposure but also want gold exposure simultaneously should consider using the Sprott Physical Gold and Silver Trust CEF. This can further diversify precious metal exposure. That gives investors the growth component of silver as clean energy technology demand increases.
CEF is a closed-end trust that invests in unencumbered and fully allocated physical gold and silver bullion in LGD bar form. Overall, CEF aims to provide a secure, convenient, and exchange traded investment alternative for investors who want to hold physical gold and silver without the inconvenience typical of a direct investment in physical bullion.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel.
1 Gold and precious metals are referred to with terms of art like store of value, safe haven, and safe asset. These terms should not be construed to guarantee any form of investment safety. While “safe” assets like gold, Treasuries, money market funds, and cash generally do not carry a high risk of loss relative to other assets classes, any asset may lose value, which may involve the complete loss of invested principal.
Past performance is no guarantee of future results. One cannot invest directly in an index. For the latest standardized performance and important risk disclosures regarding Sprott investment products, including each fund’s prospectus, which should be read carefully before investing, please review each product’s webpage by clicking on the corresponding ticker:
Exchange Traded Funds (ETFs): SETM, LITP, URNM, URNJ, COPP, COPJ, NIKL, SGDM and SGDJ
Physical Bullion: PHYS, CEF and "SPPP":https://sprott.com/investment-strategies/physical-bullion-trusts/platinum-and-palladium/
