What is Precious Metal ETF
Precious metal ETF is the new way of investing in precious metals like that of gold and 1 oz silver bars. This basically means buying a stock with a price that is tied to the current value of a precious metal. The ETF therefore represents a small amount of ownership of the chosen metal. The profit is directly proportional to the value of the metal. Should the value of the chosen metal go up, the profit also shoots up.
Precious metal ETF including 1 oz silver bars are found to track roughly due to the rise and fall of the value of precious metals today. However, they do tend to be less volatile than others as per investors’ experiences.
Why Choose Silver Bars
Gold and silver have been known to always go hand-in-hand. This goes somehow the same for ETF as well. However, there has been a rise in silver funds including 1 oz silver bars.
As silver is commonly used widely, there is said to be a potential shortage in the coming years making precious metal ETF a big hit now.
Being so, silver is definitely a good investment. It has always been a question if one should purchase 1 oz silver bars or coins. This does not really matter as any form of silver really is fine because it retains value for a long time.
Precious metal ETF is inversely proportional to U.S. dollar performance and inflation. For this very reason, investors tend to lean towards investing in precious metals including 1 oz silver bars for guard against inflation.
There are actually four types of silver bars:
1. 1,000 Oz Silver Bars – Most tough to store.
2. 100 Oz Silver Bars – Smaller, lighter, and easier to store.
3. 10 Oz Silver Bars – Very easy to store. A good option for beginners in the precious metal ETF industry.
4. 1 Oz Silver Bars – Has the same value with that of 1 oz silver rounds.
The Best Silver ETF Among Precious Metal ETF
Silver is said to be leading gold early 2012. Silver including 1 oz silver bars has been outperforming gold in the precious metal ETF since 2010 and the early part of 2011. Gold does held up much better during the sharp sell-offs but still, silver outranked gold. Statistics show that iShares Silver Trust has already gained 20% to date whereas SPDR Gold Shares had a 10% rise only.
Here are three of the best Silver ETF’s today where you can invest including 1 oz silver bars:
- SLV iShares Silver Trust – Has JP Morgan as their custodian and with $10 billion in assets and trades over 25 million shares per day.
- Physical Silver Shares Trust (SIVR) – From ETF Securities LTD and has HSBC as their custodian. They currently trade about 500,000 shares a day.
- PowerShares DB Silver Fund (DBS) – Differs as they rely on Silver Futures rather than storing actual bullion. They currently trade about 70,000 shares a day.
Silver ETF Forecast
Silver, whether it is 1000 oz or 1 oz silver bars or rounds, is known as a safe-haven asset just like gold. This precious metal ETF had shown relatively low correlation with the bond and stock market.
According to the Morningstar Analyst, Abraham Bailin:
“Silver can retain its purchasing power under strong inflationary pressure. On the other hand, increased dollar strength can detract from silver’s value as investors are able to buy more metal with each bill.”