Back to top

Image: Bigstock

Silver ETF (SIL) Hits New 52-Week High

Read MoreHide Full Article

For investors seeking momentum, Global X Silver Miners ETF (SIL - Free Report) is probably on the radar. The fund just hit a 52-week high and moved up 81% from its 52-week low of $22.58 per share. 

Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

SIL in Focus

Global X Silver Miners ETF provides investors access to a broad range of silver mining companies by tracking the Solactive Global Silver Miners Total Return Index. It charges 65 bps in fees per year (see: all the Materials ETFs here).

Why the Move?

Silver has been an area to watch lately, given the surge in the metal’s price. The metal recently topped $34 per ounce — the highest level since October 2012. Falling interest rates and safe-haven demand are driving the price higher. A lower interest rate environment raises demand for silver, as precious metals do not pay interest, making them appealing compared to alternative investments like bonds. Additionally, increased industrial demand and supply deficit conditions provide silver an edge over gold.

More Gains Ahead?

SIL might remain strong, given a weighted alpha of 72.85 and a lower 20-day volatility of 34.44%. There is definitely still some promise for investors who want to ride on this surging ETF.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Global X Silver Miners ETF (SIL) - free report >>

Published in