Gold and silver exchange traded funds (ETFs) might move up and down
with the whims of the broader market, but make no mistake: these
investments have wide range of appeal and applications for any
The most recent swings in the prices of gold and silver were a
direct result of market volatility created by the crisis in Europe.
Now that the European Union has pulled together a $1 trillion
rescue plan, silver and gold ETFs appear to be taking a breather.
But that doesn't mean you should stick a fork in them. [
How Gold ETFs Got Their Groove Back.
Barry James, who helps manage $2 billion at James Investment
Research, says that gold "does well in periods of financial
turmoil, so it is good to have some just in case." Frank Lesh, a
trader at FuturePath Trading LLC, remarks that investors are
fleeing to the relative safety of gold as the currencies markets
The Bullish Case for Silver ETFs.
Beyond that turmoil, these funds are far from irrelevant. Three
of the biggest drivers of the prices of gold and silver outside of
safe-haven investing are:
- Gold and especially silver have industrial uses. Gold is used
in wiring and is an excellent conductor of electricity. Silver is
also an excellent conductor of electricity and has antibacterial
properties. It's used in nearly any industry you can think
- Gold and silver, prized for beauty, are widely used in
jewelry. Spikes in gold demand are often seen around Indian
wedding season, when brides are gifted with large amounts of gold
to ensure their financial security. September is the heaviest
- Commodities in general, and gold and silver specifically, are
appealing in periods of high inflation. This is a period that
many believe is coming sooner rather than later, thanks to hefty
Silver prices may continue to rise further on the back of gold's
strength, but the weakness in base metals could constrain gains in
according to CommodityOnline
. Shyamal Mehta, Sr. Commodity Analyst with Commodity Online,
calculated that silver is trading above 7, 14 and 20 days weighted
moving averages, which he says signals an uptrend.
There's no shortage of choices when it comes to ETFs that invest
in gold and silver ETFs. You only have to decide how you want your
exposure: miners, futures or physical bullion.
to learn about the differences in each.
For more information on gold and/or silver, visit our
precious metals category
SPDR Gold Shares (NYSEArca:
ETFS Gold Trust (NYSEArca:
iShares COMEX Gold (NYSEArca:
PowerShares DB Gold Fund (NYSEArca:
Market Vectors Gold Miners (NYSEArca:
Market Vectors Junior Gold Miners (NYSEArca:
iShares Silver Trust (NYSEArca:
ETFS Physical Silver (NYSEArca:
PowerShares DB Silver (NYSEArca:
UBS E-TRACS CMCI Silver ETN (NYSEArca:
Global X Silver Miners (NYSEArca:
Max Chen contributed to this article.