“Gold and silver have always had value, never gone to zero. Can you say the same for stocks and bonds?” — Mark Skousen
The above pearl of wisdom from my friend and Fast Money Alert co-author Dr. Mark Skousen underscores the constant allure that precious metals have had to human beings throughout history.
Precious metals, especially during inflationary times, have held their value, while the value of fiat money issued by central banks drops, often precipitously. That is why I always recommend to my Successful Investing subscribers (and if you aren’t one, why aren’t you?) to have a bit of golden shine in their investment portfolios.
It’s also why, every year when it comes time to register for my favorite event of the year — FreedomFest — Dr. Skousen will offer you an opportunity to obtain an American Eagle Silver Dollar for yourself. Stay tuned!
Even in the most troubled and darkest days of human history, the opportunity, wealth and power that come from possessing gold and silver have never stopped gleaming like adventure to a courageous man’s eyes. But King Midas can keep his golden touch. I’m interested in the other precious metal here — silver — in the form of the iShares Silver Trust (NYSEARCA: SLV).
In short, this exchange-traded fund (ETF) focuses on reflecting, as close as possible, the price of silver, which provides a handy way for investors to own silver without having to worry about the complexity and expense of securing or transporting the metal itself.
The fund’s assets are almost completely in the form of silver bullion held by the fund’s custodian — JPMorgan Chase — alongside a very small amount of cash when necessary. Here, it is also worth pointing out that the fund does not act to take advantage of fluctuations in the price of silver. If you’re looking for an actively managed fund that does buy or sell silver when appropriate, it would be best to look elsewhere.
As of Sept. 11, SLV has been up 3.76% over the past month and is currently up 19.10% year to date.
Chart courtesy of www.stockcharts.com
The fund has amassed $13.73 billion in assets under management and has an expense ratio of 0.5%.
At the same time, silver (like any commodity) has another side that can tarnish its shine. The price of silver can be affected by changes in the global economy, due to silver’s many industrial and commercial applications, as well as changes in interest rates and the supply of silver itself. So, it’s important to carefully consider the risks and potential returns before making any investment decisions.
