Silver ETFs For The Savvy Speculator…

| June 11, 2015 | 0 Comments

silver ETFsSilver ETFs For Every Market…

As I mentioned earlier this week, the price of silver is facing some strong fundamental headwinds.  The metal is trading under $16.00 an ounce for the first time since early May, and looks as though it may drop further to test $15.50- and possibly much lower.

No doubt about it, bulls have some work to do if they want to keep silver from falling steeply in coming sessions.

All this talk about silver begs the question…

What are the best ETFs to profit from price fluctuations in the price of the metal?

Lucky for you, I’ve put together a handy list of the best offerings Wall Street has to offer.

To make the cut, the ETF must have:

  1. An expense ratio equal to or less than 1% for normal leverage funds, and 2% for leveraged products.
  1. Sufficient intraday liquidity allowing for efficient trade entry/exit.

If you don’t know what an expense ratio is, read this recent dialogue.  And if you’re not clear of the difference between and ETF and ETN, be sure to check out this important article.

Let’s get to it!

Silver ETFs For Bulls…

If you’re looking for an easy way to profit from a rally in silver, the following ETFs/ETNs are right up your alley.

First, let’s look at the normal leverage products-

iShares Silver Trust $SLV– This is the top dog of silver ETFs.  The offering has abundant liquidity and an expense ratio of just 0.50%.

ETFS Silver Trust $SIVRThis one doesn’t have as much liquidity as $SLV, but sports a lower expense ratio of 0.30%.

Now let’s look at the bullish leveraged silver products.  But remember, leveraged ETNs are very volatile, and therefore reserved for experienced traders only.

Here’s the only 2X leverage fund-

ProShares Ultra Silver $AGQ This 2X leveraged offering is perfect for anyone looking to juice their gains on a bullish silver position.  Sufficient liquidity and an expense ratio of 0.95% make $AGQ great for speculating.

And finally, the only 3X leverage bullish fund-

VelocityShares 3X Long Silver $USLV– Not for the faint of heart.  This 3X leverage fund trades fast and furious with the price of silver.  The expense ratio is a bit high at 1.65%, but it doesn’t matter because this product is meant for short-term trades only.

Silver ETFs For Bears…

This is what I love about commodity ETFs and ETNs- if you’re outlook on the price of a commodity changes, you simply switch products to match it.  Of course, having a list of all your options close by makes choosing your product quick and effortless.

Now here’s the deal…

The only inverse silver tracking funds are leveraged.  In other words, there isn’t a normal leverage fund that rises as the price of silver falls.  If you’re bearish on silver, yet don’t want a leveraged trade, I recommend you short the iShares Silver Trust $SLV.

With that said, the leveraged funds below will give anyone with a bearish silver outlook an ample opportunity at big profits!

Here’s the lone 2X leverage inverse fund…

ProShares UltraShort Silver $ZSL– Currently trading over $100 a share, $ZSL makes big bullish price swings as the price of silver falls.  But here’s a word of caution- the bid/ask spread can get fairly wide on $ZSL, so be careful.

And finally, the only 3X leverage inverse fund…

VelocityShares 3X Inverse Silver $DSLVWhile it’s priced lower than $ZSL, this 3X leverage funds rallies just as fast when silver falls.  But with an expense ratio of 1.65%, this is for short-term trading only.

There you have it…

The silver ETFs and ETNs listed above are a great way to speculate in the silver market! 

Until Next Time,

Justin Bennett

BIO:  Justin Bennett is the head commodity research analyst at Commoditytradingresearch.com.  With over a decade of real world trading experience, he finds ways for you to consistently profit from movements in commodities and the companies producing them.  Sign up for our free reports and commodity newsletter at http://commoditytradingresearch.com/free-sign-up.

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Category: Commodity ETFs, Silver

About the Author ()

Justin Bennett is the editor of Commodity ETF Alert, an investment advisory focused on profiting from the ebb and flow of important commodities via ETFs. The commodity veteran and options specialist is also a regular contributor to the Dynamic Wealth Report. Every week, Justin shares his thoughts with our readers on a variety of commodity-related topics. Justin is also a frequent contributor to Commodity Trading Research’s free daily e-letter. And he’s the editor of another highly successful and popular investment advisory, the Options Profit Pipeline.

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