A New Exchange Traded Fund May Have A Major Impact On Long Term Silver Prices
Keywords: Exchanget Raded Funds, Money, ETF, Boost Returns, Index Funds, Mutual Funds
Last week after much publicity and a long wait, the Barclay’s Silver ETF (SLV) finally started trading. And it looks like the wait was worth it. Each share represents 10 ounces of silver. Trading began at $129 a share and at the end of trading for the first day, the new Exchange Traded Fund closed at $138.12 after trading more then 2 million shares on it’s first day of trading.
This new fund appears to be immensely popular with traders. It is one of the new Exchange Traded Funds that is acting more like a commodity then a stock. Exchange Traded Funds which ten years ago were very conservative and were mostly mirrors of major stock indexes, are now getting very creative in the sectors they represent and also in the underlying financial instrument they represent. You can now but an ETF that invests in gold, silver or oil. When the equity markets are looking dull, investors can now move their money into funds that are driven by commodities. While not as volatile as the futures markets, these funds can still have wide price swings.
Silver and Gold have been recently trading at multi decade highs. With inflation beginning to increase and volatility in world energy markets, these metals could continue to increase in value. Another factor, especially driving the price of silver is the approval of Barclay’s new silver fund. The fund is backed by physical silver and trading in this fund has created a demand for physical silver. This will likely continue to drive the price of silver upward.
As the second day of trading ended with 1.5 million shares traded and silver continuing to move slightly upward, there is speculation on how long this trend will last. Silver however, is not driven by day to day news, like many equities. It is driven by long term trends. This particular trend started with the introduction of the gold standard and the end of the use of silver as money. With the introduction of the new Silver ETF, this long term trend is reversing. Silver is now for the first time in years, being stored as wealth again.
Another trend is the use of silver as an industrial metal. With the industrialization of India and China, the use silver as an industrial metal is increasing. There is now competition for physical silver for use as an industrial metal and for storing of physical silver for investment. This appears to beginning of a long term trend that will keep the pressure on silver prices to move upwards.
Andrew Goldman is president of Metal Rabbit media services, the operator of Exchangetradedfundinvesting.com and www.carealestateinvest.com He has written a number of articles on finance and investment over the last ten years.
Previous Articles Highlighter:
Another Way Of Looking At The Gold Price Meltdown (1)
The government is easing regulations that may encourage more investment in gold products. Interest in gold investments is also increasing in Thailand. Demand for gold investments in that country has been hovering around 10%-15% until 2005.
New Powershare ETFs Give Exchange Traded Fund Investors New Ways To Profit In Down Markets (2)
So other then cash is there any place to put your money? ProShares Advisors has come up with four new funds that address the problem. These funds are know as the UltraShort ProShares.
A Unique Precious Metals Exchange Traded Fund Is Launched Under A Cloud Of Worry (3)
This is more broad based for investors and is based on equities in the industry not commodity prices. The new ETF may present more opportunities to benefit from volatility, as mining-related shares tend to move more dramatically than overall bullion.
Home Sales Continue To Drop In Southern California (4)
In Southern California the sales activity and the rate of price increases reached a peak two years ago. In the current environment we are likely to see home values rising at a much slower pace or even approaching 0.
A Risky Investment Becomes Commonplace (5)
Large and small investors are now buying easy to trade investment vehicles such as Exchange Traded Funds. These funds are an easy way to give investors an entrance into the commodity markets.
Will Long Term Home Ownership Lead To Profits Or Declining Values? (6)
The report looks at volitile markets and stable markets. First lets look at the volitile markets. These include San Francisco, CA; Los Angeles, CA; and Dallas, TX. We are looking at a time period from 1986-2005.
A Foreign Exchange Traded Fund Investors Should Consider (7)
Why all the attention? If you look for the funds with the highest percentage gains for the year, this fund is not one of them. If you look for the top gaining funds for the past month, this fund is one of the top gainers with a 10.45% gain for the month.
One Of The Most Popular Exchange Traded Funds Will Soon Have Solid Competition (8)
This new fund is due to be introduced in early 2006, pending approval by the SEC. Andrew Goldman is owner of www.exchangetradefundinvesting.com. He has written several articles on the investment industry over the last several years.
What Do You Need To Know About Car Loans? (9)
Obviously, the more you pay up front, the lower your payments will be in the long run. Really try to work with what you can do to make the most of your down payment without hurting yourself financially.
Factors That Influence Car Insurance Cost (10)
There are many factors that can influence the rise and fall of an individual's auto insurance cost. By knowing what these factors are, an individual will be better able to control the price they pay for car insurance.
Mortgage Lending-A Few Facts To Start Down The Path To Home Ownership (11)
Lenders are looking to lend as much money as possible, but are always looking to accept as little risk as possible. Finding the money for your home is a necessary evil but taking that step to buying a new home should get you excited, not scare you.
Home Equity Loans-Making The Best Use Of Your Current Home Investment (12)
Hidden fees and difficult to understand rate calculations can make a bad situation get even worse. LoanTheMoney is a resource site for those considering all types of loans. Visit us at www.loanthemoney.com or check out our article directory at www.articleinternet.com for additional resources.
Real Estate Investing: The Three Levels Of Success (13)
This can also be used to invest in assets that may later appreciate in value. Three levels of real estate investors are as follows: Level one Investors - In this level, the investors learn the basic tricks of the real estate investment business, and they use it to make real estate investment a profitable venture.
A Brief Guide To Final Expense Insurance (14)
Final expense insurance policies are individualized, which means that typically anything can be included in them, unless your policy is capped at a specific dollar amount, the highest of which, are typically $25,000.
How Do You Know If Your Debt Is Good Or Bad Debt? (15)
Bad debt seems impossible to pay back. You create bad debt when you charge things you don't need or when you borrow for things that you consume quickly, such as clothes, meals, or vacations.
Average Household Income Down! Recession? Depression? Worse? (16)
This person who moves out doesn't become a full-time employee until that time. Previously, he was in school, earning little or no money. So, after he moves out, he gets a job where he makes $30,000 per year.
New Generation Real Estate Marketing (17)
Then have agents and prospects log onto their computers and click on links that bring up your tours. In some instances the viewers will be able to manipulate the tour much like they would a dvd player.
Credit Card Fraud: How To Protect Yourself (18)
The same holds true for emails. Legitimate companies do not email customers requesting credit card information. This type of fraud has become a global problem. This same type of credit card fraud might ask you to go to a website to verify personal information and card information.
The Benefits Of The 15 Year Loan (19)
On the other hand, a 15 year loan is $1382.80 a month. This shorter loan life translates to paying significantly less interest over the life of the loan. To figure out the interest, we take the total payments per year over the life of the loan and subtract the original amount of the loan which is 160k.
Choosing The Best Mortgage : What Works For You? (20)
Next, look at your current income as well as your job potential in the future. Graduated incomes are available and advantageous for many homeowners. This type of loan starts with smaller payments and works up to larger payments every few years.
Newer Articles Highlighter:
California Real Estate Market Gives Mixed Messages (1)
April of 2005 was one of the strongest months for real estate in California's history. What a difference a year makes. Sales were down 21% from last April.
Real Estate Schemes Prey On Homeowners And Lenders (2)
Homeowners need to take special care when purchasing using lease-options or refinancing. Even though there are laws regulating fraudulent activities, without understanding the market and their own finances, borrowers can get themselves under water very quickly.
Best Performing Exchange Traded Funds For 2006 Thru August (3)
The lesson is to learn the markets. With all the negative press on the real estate market, many uninformed investors will be directed away from looking at REITs as a good investment.
Using ETFs To Invest In A Good Performing Commodity Sector You May Have Missed (4)
For investors the question is how to take advantage of this space. Before Powershares PHO an investor could invest in utility funds of individual stocks. Both of these methods are hit and miss.
California Foreclosure Activity Up By The Biggest Margin In 14 Years- Is The Bust Starting? (5)
San Diego and Sacramento are two areas in California that are vulnerable to falling home prices. In addition to soaring foreclosures, there is more bad news for the California market from southern California.
Exchange Traded Funds Venture Further Into Foreign Currency Markets (6)
These markets have been difficult for small investors to enter but ETFs are now making these markets easy to enter. Depending on who you talk to, this could be a good or bad thing.
New Fund For Indian Investors Can Benefit U.S. Investors (7)
Many people are now investing in gold using Exchange Traded Funds as the investment vehicle. On the U.S. Market the two main Gold ETF funds are GLD and GDX.
Two New Exchange Traded Funds Allow Unique Oil Investment Strategies (8)
In other words, promising assets between the pair alters the ETFs' share prices to synthetically reflect oil's movement. This makes it a lot easier for investors who would normally not go anywhere the futures market to get exposure to oil prices in their portfolio.
Despite Slowdown California Home Prices Set New Record (9)
Andrew Goldman is president of Metal Rabbit media services, the operator of www.carealestateinvest.com. Andrew has contributed articles on finance and environment to severl publications over the last ten years.
New Exchange Traded Fund Makes Sophisticated Investment Strategies Available To ETF Investors (10)
Investors should understand the trade and the risks involved. This type of investment is not for everyone, however there are a number of small investors that may be attracted to it.
MyOwn10-Key - How To Balance Your Checking Account Without First Entering All Of Your Transactions (11)
To avoid over-writing the master "Balance Checkbook" etape file, click on the File menu and then the Save As command. Select a folder and enter a filename of your choosing for the new copy of the balancing etape.
Credit Card Types: Unsecured (12)
In other words, one person may have a limit of $500 while another may have a limit of $5000. There are some important issues associated with an unsecured credit card that consumers should understand.
The Benefits Of Gathering Relocation Information (13)
Behind every successful move is a successful plan. Planning a successful move will come from doing your research and taking advantage of the relocation assistance and benefits you will find by researching relocation information.
Cashback Credit Card For Reward-Loving Individuals (14)
You need to pay for your electric bills, existing mortgages, tuition fees of your children, and other essential expenses yet you do not have enough cash to pay for those expenses.
Holiday Insurance - A Necessity Or A Luxury? You Decide (15)
What If You Have To Cancel? Trip Cancellation Insurance covers the traveler in the event that a holiday has to be cancelled because of sickness, a death in the family or other dire circumstance.
How To Get Real Estate Listings Via Real Estate Marketing Articles (16)
I did, and had good results. Maybe you will, too. Click www.farmingexpiredlistings.com to learn how to average 1 or more listings a week and www.real-estate-marketing-talk.com for more lead generating ideas.
Introduction To Stocks (17)
Some brokers are paid a straight salary, some are paid a commission, and some receive a base salary in addition to their commission. A full-service broker, much like a full-service gas station, advises you on which stocks to buy.
Understanding A Balance Sheet (18)
You need to take into account the operations of the company when reading a balance sheet. Also, it is important to realize that balance sheets, though they always span a 12 month period, the beginning and ending dates can differ from one company to the next.
Penny Stocks: A Good Investment (19)
Other things that you should look for in a new company are barriers to entry, patents, and consumer demand. Here are the questions you need to ask yourself when analyzing the probability that a company will be successful: 1) Barriers to Entry: Are there are obstacles that will make it difficult for the company to sell its products or services?
Understanding Auto Insurance (20)
There are several important coverages that you need to understand. The first coverage you will see listed is called bodily injury liability. This is the amount of liability coverage you have for injuries you cause to other people in an accident.
Permalink to A New Exchange Traded Fund May Have A Major Impact On Long Term Silver Prices