Investors looking for an Exchange Traded Fund (ETF) to play precious metals often look first to gold as the default metal. This makes sense, as gold is the traditional store of value which has been used for centuries as a global currency for trade. In this article, I’m going to discuss one ETF tracking silver investors ought to consider as well.
The Global X Silver Miners ETF (TSX:SIL) tracks a broad basket of silver mining companies. This provides investors with heightened exposure to silver.
Investors are often less inclined to consider silver. This is despite the metal having outperformed most precious metals post-pandemic. Silver has a dual nature in that it is a store of value as well as an industrial metal.
Silver prices tend to be more highly correlated to global economic performance, similar to base metals such as copper. This is a direct result of silver’s use in various industrial products and processes. So if you’re bullish on long-term global economic growth, silver is a great place to be.
This ETF is a great way for investors to gain exposure to a widely diversified pool of companies at a low fee, offering investors blanket exposure to the sector and a very nice level of leverage to the price of silver, compared to what one may receive from owning physical silver or silver futures. For those looking for a hedge or added portfolio safety, this ETF is a great way to go.
