Silver Mining ETF (SIL) Hits New 52-Week High
Zacks Investment Research | Jul 05, 2016 07:45AM ET
For investors seeking momentum, Global X Silver Miners ETF (CM:SIL) is probably on radar now. The fund just hit a 52-week high, and is up over 200% from its 52-week low price of $14.94 per share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
SIL in Focus
SIL focuses on companies engaged in the silver industry including companies that mine, explore or refine silver. SIL charges investors 65 basis points a year in fees and has top holdings in Fresnillo Plc (LON:FRES) and Silver Wheaton Corp and PAN American Silver Corp (see all materials ETFs here ).
Why the Move?
The silver mining sector has been an area to watch lately as precious metals are rallying hard on a softer greenback. Also, a flight to safety boosted this safe-haven metal post Brexit. Additionally, reduced expectations for a Fed rate hike anytime soon thanks to the likely Brexit-related uncertainty showered gains on silver and the related mining stocks.
Plus, silver has high usage in industrial activities with about 50% of total demand coming from industrial applications. With manufacturing activities in the U.S. showing signs of improvement lately, investors’ interest in silver mining stocks has grown.
More Gains Ahead?
It seems that this fund will see strong trading given an extremely high Zacks Investment Research
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