I’ve never been so bullish on their upside potential and the outlook for silver. Here's a review of three funds we hold in our recommended portfolio, explains Peter Krauth, editor of Silver Stock Investor.
Here's an overview of the reason to own Sprott Physical Silver Trust (PSLV):
• Basic exposure to silver price
• Low risk
• Low premium to spot silver price (remember: not a substitute for physical silver)
2022 Progress
• Silver is up 3.7% on the year, while still in consolidation phase
• Silver outperformed stocks, bonds and crypto
Outlook
• Silver is up 33% in last 3 years and up 55% in last 4 years
• With a potential end to Fed rate hikes within a few calendar quarters, the dollar is likely to weaken
• Opportunity cost of silver versus bonds and the dollar likely to fade
• Ongoing supply deficits, industrial demand, green energy, should help boost silver in 2023
Global X Silver Miners ETF (SIL) remains a basic holding for all portfolios to maintain exposure to safest asset Here are reasons to own the fund:
• Excellent instant diversification
• High potential sector
• Low sector risk
2022 Progress
• Miners have leveraged silver down, no surprise there
• Pays an attractive 1.7% dividend while you wait
Outlook
• Should leverage silver prices higher in 2023
• Silver miners remain very undervalued right now
Here are reasons to own ETFMG Prime Junior Silver Miners ETF (SILJ):
• Instant diversification
• Exposure to higher potential of junior (actually more mid-tier) silver subsector 2022
Progress
• Followed SIL lower, but to a lesser degree, outperforming SIL
• Pays 0.4% dividend
Outlook
• 2023 should be strong, on the basis that silver extends its new upleg
• Mid-tier silver companies mostly remain very undervalued
