The commodities market in the last one year has not been that stable and it has actually led to many speculations about the future of silver ETFs. There are quite a number of silver investors who presume that the erratic nature of the commodities market in one way or another will reduce the capacity of the ETFs. What is the future of silver ETFs? Well as much as there are many huddles, it is important to emphasize that indeed the future is very bright.
The 2012 start of silver EFTs
Silver EFTs to be honest did not kick off the year very well and that was expected given the rough tide that investors in silver EFTs had endured the past year. As of 13th January 2012 silver prices declined by 1.5% and due to these fluctuations in the commodities market silver EFTs slummed rapidly. The Ishare silver trust for example shot down by 1.67% as a result of these fluctuations in the commodity prices. With silver prices falling from a historic high of 50$ per ounce in 2011 to 29$ per ounce, the confidence among investor has been legitimately wearing off. However the crucial point is that analysis of the commodity in the coming years and 2012 in particular shows some signs of improvement. The prevailing condition of the markets however is still not favorable and many investors have braced themselves for a high volatile silver trading front.
The prospect of silver investment in 2012
Well as much as the volatility of silver is highly expected there is no doubt that many investors regard it is one of the best stores of wealth as opposed to flat currencies. Even with such realties in mind, precious metals have been downgraded by rating agencies in the last years and furthermore the eminent financial crisis in Europe has also played a role in their difficulties. It is this grim yet very realistic factors that have pushed many investors away from precious metals for the sake of their net worth. The thing is however that the vibrant nature of silver trading in the commodity markets will rise all be it the nature of the market will be very risky to trade. Investors will need to develop informative trading approaches to explore the opportunities they have in making returns from the commodity.
The impact of the Euro zone crisis on silver investment
The Euro zone crisis has for sure taken its toll on silver prices and its market volatility over the past year and the truth is it will continue to affect the price of the commodity in the future. The Euro flat currency however has remained strong against other major currencies in the world and also, there have been significant strides made in trying to arrest the Euro zone problem. Investors however can cling to hope that in case the worst come to worst, the commodity will weather the storm just like it did last year.