In this article, we discuss 10 best silver ETFs. If you want to skip our detailed discussion on the silver industry, head directly to 5 Best Silver ETFs To Buy.
According to a report from the Silver Institute, demand for global silver is expected to reach 1.2 billion ounces in 2024, the second-highest quantity ever recorded. The institute attributes this increase to stronger industrial usage, which is set to reach a new annual high this year. Michael DiRienzo, the executive director of the Silver Institute, has shown optimism regarding silver's prospects, predicting that silver prices could reach $30 per ounce, a level not seen in a decade. He commented:
“We think silver will have a terrific year, especially in terms of demand.”
The Silver Institute anticipates a 9% increase in demand for silverware and a 6% boost in jewelry demand this year, with India projected to be the driving force behind the rise in jewelry purchases. Consumer electronics industry is expected to recover, which would contribute to increased demand for silver. In the short term, however, the institute acknowledges potential headwinds from a slowing Chinese economy and decreased likelihood of early US interest rate cuts, which could have an impact on institutional investment in silver. In spite of that, many market analysts believe that the US Federal Reserve will begin cutting rates in the second half of 2024, which could benefit silver prices. Silver prices tend to have an inverse relationship with interest rates, as higher interest rates make precious metals like silver and gold less attractive compared to interest-bearing investments like bonds. Recognized for its sensitivity to economic changes and higher volatility compared to gold, silver usually outperforms gold during periods of economic expansion but underperforms during economic downturns. Randy Smallwood, CEO of Wheaton Precious Metals, is of the view that gold prices may rise first, followed by a rapid increase in silver prices. He believes that silver has the potential to reach $50 per ounce, but only after gold exceeds $2,200 per ounce.
James Steel, HSBC Chief Precious Metals Analyst, told Bloomberg in an interview:
“We are more positive on silver, platinum, and palladium than we are for gold. We are looking for higher prices in all three. In the case of silver, it has enormous applications environmentally… Almost everything in a hospital that you go into now is coated in a thin layer of silver that you can’t see. (It is) anti-bacterial. Even flak jackets are sewn in silver.”
The global silver market is projected to achieve a compound annual growth rate of around 9.83% by the year 2030. The market has consistently grown due to the widespread use of silver, not just in jewelry but also in other applications such as vessels and chemical processes. The growth of the silver industry is attributed to several factors. The production of silverware, ornaments, and its use in chemical processes has been a significant driver. Additionally, silver's role in solar photovoltaic and electrical appliances for conduction and insulation has contributed to the market growth. The increasing use of silver in oxide batteries has also contributed to the industry’s expansion. Predictions for the silver market suggest that major industry players are working on incorporating innovative technologies into silver production, enhancing its appeal to consumers. Regulatory authorities play an important role in guaranteeing the quality and legitimacy of silver products, which fosters transparency in the commodity market. Consumers, along with industry stakeholders such as manufacturers and retailers, play a significant role in upholding these standards.
In the International Energy Agency's plan to achieve net-zero emissions by 2050, the demand for silver in solar photovoltaic manufacturing could outdo 30% of the total global silver production in 2020 by the year 2030. Recycling panels at the end of their life could meet over 20% of the solar PV industry's demand for aluminum, copper, glass, and silicon, and nearly 70% for silver between 2040 and 2050, as per the IEA's roadmap.
In this article, we discuss some of the best silver ETFs that provide investors with access to stocks like Franco-Nevada Corporation (NYSE:FNV), BHP Group Limited (NYSE:BHP), and Newmont Corporation (NYSE:NEM).
Our Methodology
We curated our list of the best silver ETFs by choosing consensus picks from multiple credible websites. We have mentioned the 5-year share price performance of each ETF as of March 28, 2024, ranking the list in ascending order of the share price performance. It is important to note, however, that not all ETFs have been trading for 5 years. We have also discussed the top holdings of the ETFs to offer better insight to potential investors.
10 Best Silver ETFs To Buy
Photo by Scottsdale Mint on Unsplash
Best Silver ETFs To Buy10. Global X Silver Miners ETF (NYSE:SIL)
5-Year Share Price Performance as of March 28: 3.86%
The Global X Silver Miners ETF (NYSE:SIL) aims to replicate the price and yield performance of the Solactive Global Silver Miners Total Return Index. This ETF offers investors access to a range of silver mining firms. Introduced on April 19, 2010, the fund holds net assets amounting to $882.41 million as of March 28, 2024, with an expense ratio of 0.65%. Its portfolio comprises 32 stocks. The Global X Silver Miners ETF (NYSE:SIL) is one of the best silver ETFs to invest in.
Wheaton Precious Metals Corp. (NYSE:WPM) is the largest holding of the Global X Silver Miners ETF (NYSE:SIL). Wheaton Precious Metals Corp. (NYSE:WPM) is mainly involved in the production and sale of precious metals across North America, Europe, and South America. On March 14, Wheaton Precious Metals Corp. (NYSE:WPM) declared a $0.155 per share quarterly dividend, an increase of 3.3% from the previous dividend of $0.150. The dividend is to be paid on April 15, to shareholders on record as of April 3.
According to Insider Monkey’s fourth quarter database, 28 hedge funds were bullish on Wheaton Precious Metals Corp. (NYSE:WPM), up from 24 funds in the last quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest shareholder of the company, with 21.1 million shares valued at $1.04 billion.
In addition to Franco-Nevada Corporation (NYSE:FNV), BHP Group Limited (NYSE:BHP), and Newmont Corporation (NYSE:NEM), Wheaton Precious Metals Corp. (NYSE:WPM) is one of the best silver stocks to buy.
White Falcon Capital Management made the following comment about Wheaton Precious Metals Corp. (NYSE:WPM) in its second quarter 2023 investor letter:
“Precious Metals Royalty basket (Wheaton Precious Metals Corp. (NYSE:WPM), SSL, TFPM): In the current macroeconomic environment, there are many ways to ‘win’ with gold. It is remarkable that even with record positive real yields, gold is flirting with all time highs. Why? Western central banks are increasing interest rates which means that they will have to pay more interest on the record levels of debt that their government’s owe. Where will the money come from to pay the higher interest expense? The answer is simple – more debt and more money printing! We believe the gold knows this! We believe that precious metals will protect real purchasing power and act as a hedge to the portfolio when macroeconomic uncertainty arises. Owning royalty companies at reasonable valuations gives us a high quality exposure to precious metals without project or cost inflation risks inherent in a mining company.”
9. iShares MSCI Global Silver and Metals Miners ETF (BATS:SLVP)
5-Year Share Price Performance: 9.51%
The iShares MSCI Global Silver and Metals Miners ETF (BATS:SLVP) is one of the best silver ETFs. It aims to replicate the performance of the MSCI ACWI Select Silver Miners Investable Market Index, which includes global stocks of firms mainly involved in silver exploration or metals mining. This ETF was launched on January 31, 2012. As of March 28, 2024, the fund holds net assets amounting to $173.52 million and comprises a portfolio of 34 stocks. It has an expense ratio of 0.39%.
Pan American Silver Corp. (NYSE:PAAS) is the largest holding of the iShares MSCI Global Silver and Metals Miners ETF (BATS:SLVP). Pan American Silver Corp. (NYSE:PAAS) is involved in exploring, developing, extracting, processing, refining, and reclaiming mines that produce silver, zinc, gold, lead, and copper. On February 22, Pan American Silver Corp. (NYSE:PAAS) declared a $0.10 per share quarterly dividend, in-line with previous. It was paid on March 15.
As per Insider Monkey’s fourth quarter database, 22 hedge funds were bullish on Pan American Silver Corp. (NYSE:PAAS), same as the preceding quarter. David Greenspans’s Slate Path Capital held the largest position in the firm, with 5.26 million shares worth $85.85 million.
8. Amplify Junior Silver Miners ETF (NYSE:SILJ)
5-Year Share Price Performance as of March 28: 11.77%
The objective of the Amplify Junior Silver Miners ETF (NYSE:SILJ) is to reflect the total return performance of the Nasdaq Metals Focus Silver Miners Index. The Amplify Junior Silver Miners ETF (NYSE:SILJ) tracks companies in the silver mining industry that generate the majority of their revenues from silver mining, global silver production, or activities related to developing new silver products. It is one of the best silver ETFs. The ETF was introduced on November 28, 2012. As of March 27, 2024, the fund holds net assets totalling $701.64 million, with a portfolio consisting of 50 stocks. It has an expense ratio of 0.69%.
Harmony Gold Mining Company Limited (NYSE:HMY) is one of the largest holdings of the Amplify Junior Silver Miners ETF (NYSE:SILJ). The company extracts and processes gold. It also explores for deposits of silver, uranium, copper, and molybdenum. On February 28, Harmony Gold Mining Company Limited (NYSE:HMY)’s shares rose 2.3% after the company announced that its profit had tripled to 5.96 billion South African rand in the last six months of 2023 compared to the same period a year earlier. Additionally, the company reported a 14% year-on-year increase in overall production, totalling 832,000 ounces.
As per Insider Monkey’s fourth quarter database, 13 hedge funds were bullish on Harmony Gold Mining Company Limited (NYSE:HMY), same as the previous quarter. David Iben’s Kopernik Global Investors held the largest position in the company, with 16.2 million shares valued at approximately $100 million.
Like Franco-Nevada Corporation (NYSE:FNV), BHP Group Limited (NYSE:BHP), and Newmont Corporation (NYSE:NEM), Harmony Gold Mining Company Limited (NYSE:HMY) is one of the best silver stocks to buy.
7. ProShares Ultra Silver (NYSE:AGQ)
5-Year Share Price Performance as of March 28: 17.74%
The ProShares Ultra Silver (NYSE:AGQ), ranked 7th on our list of the best silver ETFs, seeks to deliver daily investment results that are double the daily performance of the Bloomberg Silver Subindex. The ETF was launched on December 1, 2008, and as of March 28, 2024, it has a net expense ratio of 0.95%.
6. Nippon India Silver ETF (NSE:SILVERBEES)
5-Year Share Price Performance as of March 28: 22.68%
The aim of the Nippon India Silver ETF (NSE:SILVERBEES) is to achieve returns that closely mirror the performance of physical silver in domestic prices. The ETF was introduced on February 2, 2022. The Nippon India Silver ETF (NSE:SILVERBEES) is one of the best silver ETFs to invest in.
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Disclosure: None. 10 Best Silver ETFs To Buy is originally published on Insider Monkey.
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