Gold has had a fantastic 2019 so far, largely on the back of global economic anxiety and a turn back to monetary easing from central banks. Silver’s gains had been muted into the late summer, but this has changed in the month of August.
The spot price of silver has surged above $18 and looks poised to benefit from bullish conditions.
The Global X Silver Miners ETF (NYSE:SIL) has climbed 25.6% in 2019 as of close on August 28. Shares of the ETF have surged 43% over the past three months. The ETF aims to grant investors access to a broad range of global silver mining companies.
Some of the top holdings in the ETF include Pan American Silver (TSX:PAAS), a Vancouver-based silver miner. In the second quarter Pan American produced 6.5 million ounces of silver. Its second-largest holding is Polymetal, a Cyprus-based precious metals mining company. Rising gold prices have allowed the company to draw closer to its target debt burden. There is also Wheaton Precious Metals (TSX:WPM), another Vancouver-based producer.
The Global X Silver Miners ETF has not posted a double-digit percentage return since 2016, when gold and silver enjoyed a brief but explosive bull run.
Last year the ETF dropped 22%. Interest in safe havens has erupted in the face of the damaging U.S.-China trade war. Gold has flourished, and it looks like silver has room to run in this friendly environment. I like this ETF as a pickup ahead of the fall.
