Investors Flock to Silver Now
Source: Commodity Online (4/27/10)
". . .SLV has proven a boon for silver investors on multiple fronts."
More and more investors are reading about the investment options on websites and making investment decisions after considering expert opinions. This has helped silver in a big way, which is a market-expert favorite now.
Experts have been advising people to increase exposure to silver through structured products, overseas ETFs and futures contracts on local commodity exchanges.
According to a report in Economic Times, investors are putting their money in silver ETFs like iShares Silver, Powershares Silver, SPDR Silver Fidelity, Vanguard and other commodity funds. They're also investing in silver-based structured products of top investment banks like Barclays, RBS and Deutsche Bank.
The SLV silver ETF has also proven very successful. With $5.1b in net assets, it already ranks among the Top 20 largest ETFs in the U.S. And the 287m ounces of physical silver bullion it holds in trust for its stock investors is impressive.
SLV has truly become a force to be reckoned with in the silver world, fulfilling the worst fears of silver's industrial users who actively lobbied the SEC against approving this ETF before it was born. They feared the massive pools of stock-market capital that would flood into physical silver via this new ETF conduit would drive up prices. They were right, silver was trading around $12 when SLV came online.
But SLV has proven a boon for silver investors on multiple fronts. Most importantly, more capital chasing the small silver market ultimately means a longer secular bull powering to a higher climax. SLV created a first-ever conduit for stock investors, which aren't traditionally physical-silver investors, to easily migrate capital into silver. Billions of dollars of stock-market capital have already flooded into this metal that probably wouldn't have otherwise.