The Fidelity Silver Fund
Silver is an asset that can provide investors with a variety of benefits. It can hold its value, increase in price over time and be less correlated to other assets such as stocks.
For investors seeking to gain exposure to the silver market without having to buy physical metal, exchange-traded funds (ETFs) are a great option. ETFs are also cheaper to trade than mutual funds and come with lower fees.
Investing in Precious Metals
Investing in precious metals is an excellent way to diversify your portfolio. They can help you hedge against inflation, currency devaluation or other market or economic risks.
Fidelity offers many different ways to invest in gold and silver. You can buy stocks, funds and exchange-traded funds (ETFs) that invest in the precious metals.
A silver ETF, such as iShares Silver Trust (SLV), is a popular way to gain exposure to the price of silver without the hassle of storing physical bars of the metal. However, it is important to remember that these ETFs are not as liquid as a physical precious metal like silver.
Fidelity also provides a variety of gold and silver investments for retirement accounts, including self-directed IRAs. These include traditional stock and ETF investments, as well as mutual funds that invest in mining companies.
High-net-worth clients and family offices are turning to direct investing, a strategy that appeals to them because it eliminates the management fees charged by investment firms. They also like the more personalized approach.
The fidelity silver fund invests in a variety of securities that are primarily issued by companies engaged in mining, fabrication, processing and marketing of precious metals. These securities may include stock, bonds, and other investments.
This fund is a good choice for those who want to take advantage of silver’s price potential but don’t want to be exposed to the risks of owning physical silver directly. It is also a good choice for investors who are looking for a way to hedge their portfolio.
The largest challenges seen by family office staff when it comes to direct investing are obtaining quality deal flow (51%) and having too much operational risk (54%). These are seen more often at large SFOs and FEs, with over $1 billion in assets, than at smaller SFOs and FEs, with less than $250 million in assets.
Exchange-Traded Funds (ETFs)
A silver ETF can help investors participate in the upside of silver prices without all the hassle and risks associated with buying silver bars or investing in individual silver stocks. These funds are also highly liquid, charge a reasonable ETF expense ratio and have low trading costs.
Unlike mutual funds, which trade only once a day after the markets close, ETFs can be bought and sold throughout the trading day. This allows for price discovery and liquidity that mutual funds can’t offer.
These funds are typically registered with the Securities and Exchange Commission as investment companies under the Investment Company Act of 1940. They are generally diversified, and many ETFs track a specific market index. Some ETFs may also focus on a particular industry or sector, while others include both domestic and international holdings.
The fidelity silver fund (SLV) holds shares of companies that produce or process metals and other commodities. These companies often have low production costs and can generate profits when silver prices are rising.
Some of these stocks also have a large market cap, which makes them attractive to investors. For example, Alcoa (ALCO) is a leading aluminum producer that produces and sells the material to other businesses.
These companies may be able to take advantage of an increase in demand for silver as new applications are developed. For instance, more solar panels could drive silver prices higher.
Another way to gain exposure to silver is through an exchange-traded fund that tracks the price of the metal, less expenses. These funds have been around for a long time, and there are a number of options to choose from. Some of these funds also offer leverage, which can amplify profits and losses. Using leverage can be risky and should only be used by those who understand it well.