SLV - SIL: Silver Prospects Look Good But SIL May Not Necessarily Benefit

2024-04-24 21:13:43 ET

Summary

• The Global X Silver Miners ETF has underperformed other miners in the past year, delivering returns of less than 3%.
• We question if SIL is the best way to exploit the tailwinds enveloping the silver market.
• The prospects for silver look bright, particularly in the latter half of the year.
• Silver miners look oversold relative to other miners, and the long-term risk-reward looks promising for SIL, but in the short-term, it could face some resistance.

Return Profile

The Global X Silver Miners ETF ( SIL ), a ~$1bn sized ETF that offers coverage to 32 stocks involved in the mining of silver, hasn’t set the world alight over the past year. In fairness, even other metal and mining stocks haven’t done exceedingly well, delivering only mid-single-digit returns, but SIL has lagged slightly, delivering returns of less than 3%....

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