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What is a Silver ETF?

What is a Silver ETF?

April 24, 2024652 view(s)

Another higher week for the monetary metals, with gold up 2% to $2,375, and silver up 2% to $28.56. Platinum was down 1% to $957, and palladium was up 2% to $1,069.

 

Since a year ago today, gold is up 19%, silver is up 14%, platinum is down 9%, with palladium 32% lower.

Building on last week’s discussion of gold ETF’s, today we will tackle silver ETF’s. Everything that was true about gold ETF’s is also true about Silver ETF’s, with one difference being Silver ETF’s can be more volatile and dangerous, because the price movements of silver is often more extreme than gold.

 

It is better, in my opinion, to hold physical metal. One reason is to take full advantage of price increases for silver. When supplies are tight and demand is high (such as during economic turmoil), everyone is clamoring for physical silver, which increases the premiums over the spot price.

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When you own physical silver, you can often sell it for more than spot price during these periods - if you need to sell it, that is. Meanwhile, the holder of an ETF does not get the extra benefit of higher premiums when they sell the paper derivative of silver, which is usually tied only to the spot price of silver.

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