Silver etf
Invest in silver ETF
or trade etf silver shares
Invest in silver ETF or trade etf silver shares. Both can generate nice profits for your portfolio. But I recommend to be active investor. Do not hold this commodity ETF for long term. You can be very disappointed by results.
Why to invest in silver ?
This is metal with two features. It is industrial metal. But it is also one of precious metals.It therefore reacts positively to economic expansion. When global economy is rising, when manufacturing is going up, then also silver is in demand. Second reason is that with current state (2011) of economies in developed countries like USA or Europe, we see easing of interest rate policies and also money printing. These tactics used by big central banks in developed world shake confidence of investors in fiat currencies like US dollar. And a lot of investors are using precious metals as an alternative to paper currencies. These reasons create strong trends in price of this metal. These trends can be use by active investors or traders and can generate nice profits in their portfolios. It is important to know that there is possible that the trend will not be only up but also down. Both trends - uptrend and downtrend - could be very big moves. Just notice this chart below.
This metal is typically priced in USD, but there is also possible to trade it in another currencies. If we will see something positive from US government then USD can rebound. In such case price of silver in USD will decline. There is possible to buy this metal in another currency (like EUR or GBP or JPY) if you have
good stock broker.
Silver ETF List
Most popular silver ETF is SLV. This exchange traded fund is tracking price of physical metal. As you can see on the chart below, stock chart of SLV is similar like cash chart above.
But SLV is not only one option how to invest in silver. Traders could also use shares of DBS for their exchange traded fund trading strategies. This exchange traded fund is not leveraged,too.
Trading silver using leveraged ETF
Some daytraders could also prefer to use
leveraged ETF
shares for trading silver. I mentioned several times that leveraged exchange traded fund shares are not good for long term holding. These two times leveraged shares are best for daytraders or very short term traders. If you are position trader or active investor, use standard silver ETF shares mentioned above for long and short selling strategies.AGQ Ultra Long exchange traded fund
ZSL Ultra Short exchange traded fund
One very specific option is to trade sector of silver mining companies. It is possible to select best silver stocks by using your own analysis or simply use silver miners exchange traded fund with symbol SIL. This exchange traded fund is not directly exposed to price of silver.
Return from Silver ETF back to Commodity ETFs
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