Sprott Launches New ETF Targeting Silver Miners and Physical Silver Market

Sprott Inc., a North American asset management firm with $33.4 billion in assets under management, has launched the Sprott Silver Miners & Physical Silver ETF (NASDAQ: SLVR), positioning itself as the only ETF providing pure-play exposure to silver miners and physical silver.

The new ETF arrives amid significant momentum in the silver market. In 2024, silver emerged as a top-performing commodity, returning 20.58%. Industrial demand for silver has surged, particularly in green economy applications, with the Silver Institute estimating a 7% rise in industrial demand that surpassed 700 million ounces for the first time.

Silver’s investment appeal stems from multiple factors. Traditionally viewed as a hedge against inflation with low correlation to other asset classes, the metal has gained additional prominence due to its critical role in electrification technologies. Solar panels and electric vehicles increasingly rely on silver, driving market interest.

Macroeconomic conditions further support silver’s potential. Sprott’s investor presentation highlights that periods of lowered interest rates and decelerating inflation have historically benefited silver prices. The company notes that silver and gold typically rally during times of currency debasement, inflation, falling interest rates, and geopolitical uncertainties.

The SLVR ETF distinguishes itself by focusing on silver producers, developers, and explorers while avoiding silver-as-a-by-product miners. This approach provides investors twice the exposure to silver compared to other mining ETF strategies, according to Sprott’s analysis.

The Silver Institute’s 2024 World Silver Survey reveals nuanced production dynamics. In 2023, only 28.3% of silver was produced from primary silver mines, with the majority derived from gold, copper, and lead/zinc operations. These complex supply chains make targeted investment strategies increasingly important.

As global economies transition toward low-carbon technologies, silver’s role becomes increasingly critical. The SLVR ETF offers investors an opportunity to participate in this emerging economic ecosystem by providing exposure to companies actively producing or holding physical silver.

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