The Exchange traded funds (ETFs) have quietly been gaining traction among investors in recent years. ETFs trade just like stocks, but instead of “shares” investors are actually buying and selling “units”. The iShares Silver Trust ETF (NYSEARCA:SLV) has quietly rallied to a record high, as investors have taken notice of the opportunities in Silver mining stocks, the attraction of SLV is clear.
Silver has long been viewed as a safe-haven asset, and the recent rally of Silver ETFs has only added to its appeal. The iShares Silver Trust ETF (NYSEARCA:SLV) is the largest Silver-backed ETF in the world, and it has seen its share price increase more than 40% this year. investors have been drawn to Silver ETFs for a number of reasons, including the low/negative correlation between GLD and SLV relative to all other asset classes, including bonds, stocks, and commodities.
In addition to its low correlation, investors have also been drawn to Silver ETFs because of their liquidity. Silver ETFs are traded on the stock exchange, which makes them easier to buy and sell than physical Silver. Silver ETFs also offer investors the opportunity to diversify their portfolios without the hassle of storing physical Silver.