An analysis of precious metals and commodities funds indicates that silver could well be the new gold for investors seeking to hedge against inflation.
The Globe and Mail conducted an analysis of the eight best and worst performing funds for the period from 1 August to 19 September in the categories of precious metals, commodities and alternative strategies.
The conclusion of their analysis? Silver has supplanted gold as the best performing precious metals bet – at least in the short term.
Sprott Silver Equities Class-A surged a stunning 35.55%, a wide margin ahead of second-place holder BMO Junior Gold Index ETF, which rose 28.94%。
The Sprott fund is Canada's only mutual fund specializing in silver securities, and received a hefty boost from a 25% gain in silver prices during the period. Gold climbed 10% over the same period.
According to Charles Oliver, co-manager of the fund at Sprott Asset Management, silver stocks are still playing catchup and remain "incredibly cheap."
The US Mint recently reported that its year-to-date sales of silver coins have outpaced sales of gold coins fifty-fold in terms of weight.