Precious metals investors are investing in silver now at a higher rate than gold – and the price is rewarding them.
The physically backed iShares Silver Trust (NYSE: SLV) took in $88.2 million in new money last month, according to data from IndexUniverse. UBS expects holdings in major silver exchange-traded funds (ETFs) worldwide to grow by 10 million ounces (311 tons) this year.
That's a stark contrast to the $227 million of outflows in the gold-backed SPDR Gold Trust (NYSE: GLD) and $6.66 billion among fixed-income funds.
Here's why those bets will pay off.