• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Precious Metals Market
    Precious Metals News
    Precious Metals Stocks
    • Precious Metals Market
    • Precious Metals News
    • Precious Metals Stocks
    silver investing

    ETF Interest Strong Despite Silver Price Declines

    Melissa Shaw
    Jul. 21, 2017 10:10AM PST
    Precious Metals
    Silver Investing

    Silver has fallen 12 percent in the last three months, but ETF inflows have been strong.

    The silver price rallied 17 percent during the first four months of 2017, but has fallen 12 percent in the past three months. 
    In contrast, assets in ETFs backed by silver have risen 6.6 percent since April 24 to reach a record 21,211 tons. George Coles, an analyst at Metals Focus, told Bloomberg that the divergence is being driven by different types of investors.
    Large, active hedge funds have been shorting COMEX futures on the risk of rising US interest rates, pushing silver lower. Meanwhile, smaller traders looking to diversify their portfolios have jumped into silver ETFs. He believes those smaller traders may be rewarded as slower US economic growth boosts demand for safe-haven assets.


    Indeed, in a recent Bloomberg survey of 13 traders and analysts, the majority said they are bullish on silver, with 11 predicting price gains and two predicting declines. The median 12-month forecast given among the seven respondents that gave an estimate was $20 per ounce; that would be a 24-percent rally from the current price level.
    Other analysts are also bullish on silver. Johann Wiebe of Thomson Reuters GFMS predicts that silver will reach an average of $17 in Q3 and approximately $18 in Q4. Looking ahead to 2019, Wiebe is “more optimistic,” and anticipates that silver will trade above $19.
    Capital Economics recently released a more modest prediction of $15 by the end of 2017, with a recovery to about $16 by the end of 2018. The precious metal was trading at $16.30 as of 1:24 p.m. PST on Thursday (July 20).
    Further interest rate hikes from the US Federal Reserve will be key to watch as the year continues. While expectations of further hikes have been running high, Fed Chair Janet Yellen’s speech to Congress earlier in July left some market watchers wondering if increases will actually happen. If rates are left unchanged that would bode well for silver, which tends to do better when rates are low.
    Interestingly, during Yellen’s speech an unknown man held up a sign that read “Buy Bitcoin.” He was later removed from the hearing room, but bitcoin was trading 3.7 percent higher after the event. There is some debate about whether bitcoin will become a substitute for gold or cannibalize part of the gold market; silver has been largely left on the sidelines of these discussions.
    Don’t forget to follow us @INN_Resource for real-time news updates!
    Securities Disclosure: I, Melissa Shaw, hold no direct investment interest in any company mentioned in this article.
    silver investingthomson reutersinterest ratejanet yellen
    The Conversation (4)
    Lee Lowe
    Lee Lowe
    21 Jul, 2017
    What is the silver stock paying dividends?
    1 Reply Hide replies
    Show More Replies
    Lee Lowe
    Lee Lowe
    21 Jul, 2017
    What is the silver stock paying dividends?
    1 Reply Hide replies
    Show More Replies

    Go Deeper

    AI Powered
    Silver bars on pile of $100 bills and green chart going up.

    Could the Silver Price Really Hit $100 per Ounce?

    Closeup of US silver coins with eagle and stars design on a black background.

    Silver Price Update: Q2 2025 in Review

    Latest News

    Strategic Critical Mineral Expansion into Tungsten

    Castle Launches Extensive Auger Drilling Campaign at Kandia

    Element79 Gold Engages Rangefront Mining Services to Prepare NI 43-101 Technical Report on Gold Mountain Project; Site Visit Completed

    Seismic Equipment Arrives For Enercam Resources' Oil & Gas Block VIII, Cambodia

    Forte Minerals Engages Strategic Advisors, Expands Capital Markets Team, and Launches AI-Powered Investor Tool

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Precious Metals Stocks

    Silver47 Exploration

    AGA:CC

    Apollo Silver

    APGO:CA

    Anteros Metals

    ANT:CC

    Silver Crown Royalties

    SCRI:CC

    Boab Metals Limited

    BML:AU

    Prismo Metals

    PRIZ:CNX
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES
    ×