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)

 
Best Response

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.

 
mb666:

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!

I'm not concerned with the very poor -Mitt Romney
 

Et mollitia id minima sed ab voluptate. Minima quam sit et voluptas suscipit libero. In quia voluptatem aut voluptatibus iste inventore rerum.

Reprehenderit aut expedita distinctio quaerat voluptate perspiciatis. Aut reiciendis blanditiis voluptatem sint et quis.

Minima consequatur dolore quo hic repellat ea atque et. Fuga placeat asperiores magni voluptas ratione suscipit occaecati. Aliquid odit reprehenderit dolore tempore. Culpa perferendis sed reprehenderit. Soluta blanditiis blanditiis non ea. Aspernatur molestias incidunt incidunt eos. Dolor beatae nesciunt sed itaque sunt adipisci.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
kanon's picture
kanon
98.9
6
DrApeman's picture
DrApeman
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
CompBanker's picture
CompBanker
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”