Silver ETF, Overpowering Gold
Silver ETF has performed exceptionally well, outperforming many other products. Thus, investing in silver has resulted in better market conditions. Before going further, first let's get familiar with the silver ETF. It is an exchange-traded fund whose investment target is a raw silver asset that is held in trust by the fund manager. Silver ETFs are basically recognized as a grantor trust, and each share of the ETF has a specific right on a precise amount of silver.
The silver and gold ETFs were introduced in early 2000, and it developed as an attractive investment opportunity to the investors. Gold investment has dominated the market for a long time but other precious metal such as silver is also becoming popular among investors. Investors have used this precious metal for trading as well as an essential part of a longer term strategy. On the other hand, silver is also an important commodity in the financial world. With the weakening of the U.S. dollar, the silver market, has gained increased interest. Commodity funds are becoming preferable among investors and silver miner ETF has grabbed more attention in the market.
Silver has not only been used as a precious metal, but it is also being used in the industrial appliance as well. The biggest benefit of silver is that it is a hedge against inflation. Silver ETFs held in taxable accounts result in a higher long-term capital-gain. The capital gains largely depend on how you must hold an ETF for more than one year. Investors are giving preferences to the silver mining fund over gold. Silver is still cheaper and the major reason why investors prefer silver over gold is because investment demand for gold will take over in any case than silver, but once the gold price increases, then silver will be preferred. In case of silver, investors get 50 times more silver for their money than gold. If you are looking to diversify your portfolio, silver ETF is an excellent choice.