Investors Are Pouring Money Into Silver ETFs
- Large, active funds bearish even as ETF assets rise to record
- Silver is a turbulent market, with prices down 12% in 3 months
Bars of silver inside the Doe Run Peru smelter and refinery.
Photographer: Meridith Kohut/BloombergThis article is for subscribers only.
Silver, known for being a market of extremes, is living up to its reputation this year.
Prices rallied 17 percent in the first four months of the year, only to reverse and wipe out those gains. Despite the selloff, investors are pouring money into exchange-traded funds, and assets have reached a record 21,211 metric tons, valuing the holdings at $11 billion. At the same time, the picture is bearish in the futures market, where hedge funds now hold the first net-short position in two years.