Silver ETFs
So the other day, there was this thread talking about how it was a good time to buy silver. Some of you may agree, and some of you may disagree- I myself, while sympathetic to the Fed's efforts, realize that the tappering off of QE will mean that the bubble economy will inevitably pop.
I realize that it probably won't pop for a while, but I just want to buy an ETF now and get it over with, since I really don't have the time or inclination to be trading equities everyday until the bust.
That said, what are desirable qualities of a good ETF? Recently, I've been looking at AGQ and USLV, which both have a reasonably low price. What attracts me most, however, is the high trading volume- both of these ETFs had a really good appreciation rate during the '08 crisis, and I feel like the volume had something to do with that.
Does the volume traded of a fund have anything to do with a funds performance? Or am I mistaken? Novice investor here, so trying to get some insight.
Again, pic not related (sorry, posting from work, don't have another image cause google is blocked here)
also, if anyone knows of any good silver ETFs, feel free to list them
SLV?
Good ETF = one that tracks the price of spot silver as close as possible.
With commodity ETFs there is a risk of contango while rolling over contracts, making them deviate from the underlying futures. It was recently that I learned the hard way with UNG. Get EOD prices for spot silver and all silver ETFs, calculuate ln change, and then use the Correl function. Generally, the one closest to 100 is ideal.
I know that GLD tracks spot gold very well so it might be similar with silver. Oil and natural gas not so much.
Also, as a general rule, avoid leveraged or inverse ETFs. They should only be used for day trading.
Correl function? I've only taken introductory finance, where can I get more information on this?
Thanks in advance!
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