Should Silver Investors Fear the Fed?

Last week's report from the U.S. Bureau of Labor Statistics suggests that the employment picture in the U.S. may be stabilizing. This news, in turn, is leading to the belief that the Federal Reserve may begin to considering slow the rate of quantitative easing, thus bringing inflation concerns further in check. These developments have led to dollar strength and further weakness in precious metals. The SPDR Gold Trust (NYSEMKT: GLD  ) , the gold ETF, and the iShares Silver Trust (NYSEMKT: SLV  ) , the silver ETF, are each down sharply this year. Still, industrial use of silver can lead to the conclusion that an allocation to silver remains important.

In the following video, Fool.com contributor Doug Ehrman discusses macroeconomic factors driving silver prices and why Silver Wheaton (NYSE: SLW  ) remains one of the best ways to get exposure to silver.

If you're looking for a company whose success is determined by the metals market, but without involving itself in the risks of physically mining the metals, Silver Wheaton provides a unique play on the future of silver. SLW chooses to finance the mining of silver; it has grown sales and net income every year since 2008, and also has increased competitive advantages over its limited peer group. To learn more about Silver Wheaton, click here now to access The Motley Fool's premium research report on the company.


Read/Post Comments (2) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 16, 2013, at 1:29 AM, BilboBaggins wrote:

    I would love to see the Fed halt QE. It would hurt the portion of my portfolio that I allocate to silver (less than 5%) but it would be the best thing for the country. Inflation and a weak currency has destroyed many national economies and it is very stupid to think that our rulers are smarter than the rulers of other countries - so smart that they won't ever follow in the path of so many other well intentioned rulers.

    While they allow me to bet against their decisions, I will continue to do so, holding silver, foreign stocks, etc yet still keep a portion in the US market in case they get it right.

  • Report this Comment On June 26, 2013, at 3:32 PM, jargonific wrote:

    Silver Wheaton down to 17.80's. Now what?

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2491602, ~/Articles/ArticleHandler.aspx, 11/27/2014 11:13:11 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement