The ETFS Silver Trust is sponsored by the United States division of ETF Securities, founded by Australian businessman and philanthropist Graham Tuckwell. In concert with the World Gold Council, the company listed the very first gold exchange traded product (ETP) in the world in 2003. This was followed up by the first oil ETF two years later and the Silver Trust in 2009. This holds silver bullion conforming to LBMA good delivery regulations at HSBC Bank USA in London, and has since attracted assets of $580 million. ETF Securities now offers between 300-400 ETPs on nine exchanges and in five currencies (US and Australian dollars, euro, pound, and yen) across four continents. With a total $30 billion in assets, it’s the seventh largest ETP investment manager in the world. Its USA headquarters are located in New York City’s Chrysler Building, and it trades on the New York Stock Exchange under SIVR.
Suitability and Recommendations
Like other silver exchange traded funds such as iShares Silver Trust, ETFS Silver Trust holds physical silver bullion for investment through the purchase of shares. It’s a simple and straightforward way to add this valuable precious metal to your portfolio without having to understand the more complex factors of commodity markets such as futures. When you buy a share, it’s a share of the actual silver bars in the bank vault. Furthermore, you “own” bullion without the security worries and ongoing expense of storing it. You instead pay the fund a fee to hold and manage the metal. This, calculated as a ratio of the amount you own, is slightly lower than that charged by iShares which, with its higher volume, offers better liquidity.
Investment in the ETFS Silver Trust is recommended as a short-term hedge against inflationary pressures and volatile markets in times of economic and political uncertainty.
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