This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Silver ETFs King Of Q1 2013

Silver ETFs King of Q1 2013

Silver ETFs saw the strongest inflows of any single commodity in the first quarter of 2013, a recently released quarterly commodities report from ETF Securities reveals. Specifically, net new buying of silver products totaled $875 million as investors rotated into cyclical assets.

North Americans were the top investors in silver ETFs in Q1, spending $732 million compared to Europe's $126 million. However, both regions clearly preferred the white metal over gold.

Nick Brooks, head of research and investment strategy at ETF Securities, explained to Silver Investing News that there was a consistent move out of gold, which saw a massive $9.2 billion in net outflows from ETFs, into more cyclical commodities. Rarely is a trend so cleanly obvious as it was in the first quarter of this year, he said.

Brooks pegged the flow out of gold largely on positive sentiment about the US economy, noting that improving data drove expectations for higher interest rates. Also, speculation that the Fed may ease off on the printing press gave the dollar a boost.

Investors reacted by cutting their positions in gold and moving into the type of assets that tend to perform in a rising growth environment, Brooks said. And silver was one of the beneficiaries of that shift.

It is not clear exactly how much of the money that came out of gold went into silver, but what is clear is that gold ETFs saw heavy liquidation as silver ETFs saw strong inflows.

Given that silver tends to benefit from many of the same drivers as gold, it may seem strange that the white metal did not also suffer from weak ETF demand.

Brooks explained the situation with the comment, "historically, silver performs very well in an environment of rising growth, certainly outperforming gold in that environment. Recently, most silver investors have been going in more for the metal's cyclical characteristics, not for its alternative currency, store of value characteristics.”

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs