The spot price of silver has climbed 7% over the past three months as of after hours trading on February 6. Silver has been somewhat inconsistent over the past few years. The spot price of silver and related equities benefited from the brief precious metals bull run in 2016, but silver has not enjoyed the upticks that gold did last year.
The outlook for gold and silver has improved markedly as the U.S. Federal Reserve has taken a dovish turn. In late January, the Fed held rates at 2.25% and 2.5% and stressed patience going forward. Economists are projecting slower growth in the U.S. and international into the next decade, which should push central banks away from their rate tightening path in the near term.
The Global X Silver Miners ETF (NYSE:SIL) has climbed 7.2% in 2019 as of close on February 6. Shares are up 13% over the past three months.
Its top holdings include Wheaton Precious Metals, a Vancouver-based silver miner, Pan American Silver Corp., Polymetal International, and Tahoe Resources.
Oddsmakers have dropped the chances for a rate hike in 2019, and the odds for a reversal have increased. This may be a stretch, but it illustrates the dovish environment early this year.
The Global X Silver Miners ETF comes a little pricey after a three-month run, but I like the ETF as a long-term hold. Silver has a great chance to recapture momentum with gold as economic turbulence and a reversal on interest rate tightening lures investors into precious metals.
