Sprott Launches New ETF Targeting Silver Miners and Physical Silver Amid Growing Green Economy Demand
TL;DR
Invest in the Sprott Silver Miners & Physical Silver ETF for pure-play exposure to silver, potentially benefiting from rising demand.
The SLVR ETF reflects the Nasdaq Sprott Silver Miners™ Index, providing access to silver producers, developers, and explorers.
Investing in silver could support the transition to a low-carbon economy, promoting innovations for a sustainable future.
Silver's industrial demand is on the rise, offering potential investment opportunities in companies driving global electrification and green economy applications.
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Sprott Inc. has introduced a new exchange-traded fund (ETF) designed to provide investors with comprehensive exposure to silver miners and physical silver. The Sprott Silver Miners & Physical Silver ETF (NASDAQ: SLVR) arrives at a critical time when industrial demand for silver is rapidly expanding, particularly in green economy applications.
Silver's industrial significance has grown substantially, with demand rising 7% in 2024 to surpass 700 million ounces. This increase is primarily driven by green technology sectors, including solar panels and electric vehicles. The metal experienced a physical deficit for the fourth consecutive year, briefly reaching $35 per ounce – its highest level since 2012.
The ETF distinguishes itself by focusing exclusively on silver producers, developers, and explorers, avoiding miners that produce silver as a secondary product. According to Sprott, this approach provides investors twice the silver exposure compared to other mining-focused ETFs.
Macroeconomic conditions further support silver's investment potential. Historical trends suggest silver prices typically rally during periods of lowered interest rates, currency devaluation, and economic recovery. Notably, silver has historically outperformed gold, with price increases averaging twice that of gold during precious metals bull markets.
The Silver Institute's 2024 World Silver Survey highlights the complex dynamics of silver production, with only 28.3% of silver coming from primary mines. The remaining production emerges as a byproduct of gold, copper, and lead/zinc mining operations.
As global economies transition toward low-carbon technologies, silver is positioned to play a crucial role in enabling technological innovations. The new ETF offers investors an opportunity to participate in this emerging economic transformation while potentially benefiting from increased silver demand.
Curated from NewMediaWire
