Silver and copper prices have been on the move higher as uncertainty fills the commodities market after the inauguration of Donald Trump. Traders have been adding bullish bets on both metals, opening opportunities in ETFs that track both of these commodities.
As mentioned in Mining.com, the prices of both silver and copper have been moving above international benchmarks. From a policy standpoint, President Trump could impose tariffs on imported goods, sparking a trade war that could push the prices of both metals higher.
“Metals including copper, silver and platinum have seen a sharp price dislocation between London and New York in recent weeks, while differentials in oil prices between the US and Canada also have expanded,” noted Mining.com, adding that markets were already pricing in the potential of forthcoming U.S. tariffs even before the inauguration of President Trump.
Various news outlets are saying the president could impose tariffs between 10% to 20% on all foreign goods. When it comes to products from China, the imposition of tariffs could be even higher, potentially reaching 60% or more.
China is one of the top-producing companies when it comes to both silver and copper so it will be interesting to see how this dynamic plays out. Both metals are vital components in alternative energy technology, especially when it comes to electric energy.
2 Potential Plays to Consider
If prices continue to run higher, this offers investors two potential plays from Sprott. One is the Sprott Physical Silver Trust (PSLV ). The fund invests in unencumbered and fully allocated London good delivery silver bars, giving investors the tangible feel of investing in physical silver without the storage issues. 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.
For opportunities in copper, consider the Sprott Copper Miners ETF (COPP ). The fund tracks the Nasdaq Sprott Copper Miners Index (NSCOPP), which tracks the performance of a selection of global securities in the industry. That includes producers, developers, and explorers that support the industry. For diversification, COPP provides blanket exposure to this mining industry by focusing on large-, mid-, and small-cap mining companies.
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
