Silver funds have taken in a wave of new cash this year and assets are approaching an all-time high. Prices are up 23 percent in 2016, following a similar rally in gold on speculation the Federal Reserve will hold off on raising interest rates.
“We’re still seeing big chunks of managed money coming into the silver market,” Adrian Ash, head of research at online-trading service BullionVault, said by phone from London. “Inflows from our clients match those at the all-time highs of early 2011.”
“Silver has gone mental as it sometimes does,” he said. “It’s gold on steroids.”
Silver is often used as a more volatile play on gold’s inflation and risk-hedging properties. The performance this year has beaten other precious metals — gold, platinum and palladium. While silver funds have seen a surge in popularity, they’re still a tiny part of the market compared to gold.