Consider how gold has performed as of late. It shouldn’t come as a surprise that interest in silver hasn’t been as strong. That said, there are myriad reasons to consider adding exposure to the white metal in your portfolio.
Earlier in October, John Hathaway, MBA, CFA, managing partner, Sprott Inc. & senior portfolio manager, Sprott Asset Management USA, Inc., broke down what silver brings to the table as a portfolio allocation. Despite past precedence for falling behind gold, he noted that silver has outperformed significantly as of late.
Highs Breaking a 15-Year Record
As Hathaway pointed out, the price of silver has risen 61.39% YTD as of September 30. He added that the price of the precious metal has seen attained highs it has not reached in over 15 years.
Along with silver’s strong individual performance, Hathaway also noted that a silver allocation can provide a portfolio with a potent diversification opportunity. This is especially true when paired with gold and gold mining equities.
“Importantly, silver also presents significant catch-up potential, supported by chronic underinvestment, supply deficits and its dual role as both a monetary and industrial metal,” he added. “With disciplined management, improved balance sheets and leverage to higher precious metal prices, gold miners appear to be better positioned than in prior cycles. In our view, physical bullion and selective active exposure to mining equities — including both gold and silver producers — offer a compelling case for strategic allocation.”
Tackle Silver Investing Through the ETF Wrapper
The Sprott Silver Miners & Physical Silver ETF (SLVR) could help portfolios amplify pure-play access to the silver industry. SLVR offers a distinct focus, investing in a mix of silver producers, developers, explorers, along with physical silver itself.
Meanwhile, the Sprott Active Gold & Silver Miners ETF (GBUG) can provide exposure to both gold and silver miners within a single ETF wrapper. The actively managed fund leverages Sprott’s expertise in the field of precious metals to navigate the field of gold and silver miners to deliver attractive long-term results.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.
VettaFi LLC (“VettaFi”) is the index provider for URNM, for which it receives an index licensing fee. However, URNM is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of URNM.
“Bullish” refers to an outlook or sentiment that a particular stock, sector, or the overall market is expected to rise in value.
The North Shore Global Uranium Mining Index includes companies primarily involved in uranium mining, exploration, production, and holding physical uranium—tilted toward junior miners.
The Nasdaq Sprott Junior Uranium Miners Index (NSURNJ) tracks the performance of small‑ and mid‑cap global companies engaged in uranium mining, exploration, development, production, royalties, or supply.
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.
Diversification does not protect against loss.
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): SETM, LITP, URNM, URN, COPP, COPJ, NIKL, SGDM, SGDJ, SLVR, GBUG, METL
Physical Bullion Funds: PHYS, PSLV, CEF, and SPPP.
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 asset classes, any asset may lose value, which may involve the complete loss of invested principal.
