For investors seeking momentum, Global X Silver Miners ETF SIL is probably on the radar. The fund just hit a 52-week high and is up 77.6% from its 52-week low price of $28.02/share.
But are more gains in store for this ETF? Let’s 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
The Solactive Global Silver Miners Total Return Index seeks to measure broad-based equity market performance of global companies involved in the silver mining industry. The product charges 65 bps in annual fees (See: all Materials ETFs here).
Why the Move?
Silver has been an area to watch lately, given the surge in the metal’s price. 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 continue its strong performance in the near term, with a positive weighted alpha of 51.92 (as per Barchart.com), which gives cues of a further rally.
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Global X Silver Miners ETF (SIL): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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