Gold and silver both have their use cases in investors’ portfolios depending on their needs, but for a short-term opportunity, silver might fit the bill.
Over the long term, gold is an ideal option as a store of value. In the shorter timespan, investors looking for a quick opportunity to trade a precious metal may want to give silver a closer look.
For short-term traders, volatility can be their best friend. That’s especially the case if they can deftly navigate through fluctuating prices in order to reap a short-term profit.
“Silver can be highly volatile in the short term, due to relatively low liquidity, especially in the financial market,” said Mahesh Agrawal, assistant director of specialized solutions at Acuity Knowledge Partners. “The volatile nature makes silver a riskier bet than gold, and investors need to select the asset class that best suits their portfolio risk management requirements.”
Accessible Silver Exposure
Getting access to silver via an exchange traded fund (ETF) has its advantages. One of them is less maintenance, as through other routes, “you’ll need to safeguard it yourself, making it less secure than if you owned it via an ETF,” Bankrate noted.
“And owning an ETF that holds physical bullion also allows you to get the full price of your holding on a public exchange rather than trade it to a dealer at a discount,” Bankrate added.
As such, one fund to consider is the abrdn Physical Silver Shares ETF (SIVR). As the fund’s name explicitly states, it offers physically backed silver exposure with the trust holding the actual silver bullion bars in secure vaults.
For added fund transparency for the silver bullion bars, a bar list is made available to the public here. In terms of pricing, the fund uses prices from LBMA’s specifications for Good Delivery, which is an internationally recognized and transparent benchmark for pricing physical silver.
Investors can feel confident knowing that the metal is held at a secure vault of JPMorgan located in London, U.K. For added security, Inspectorate International, a leading physical commodity auditor, inspects the vault twice per year, with one inspection coming at random.
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