If Silver Heads Higher, Silver Miners Could Explode By StockNews

With gold trending higher, is silver next? Silver prices tend to follow gold, which means the metal could see higher prices in the weeks ahead. Silver mining stocks typically outperform silver, which is why Andrew Hecht is recommending the ETFMG Prime Junior Silver Miners ETF (SILJ).

• Silver often follows gold- the yellow metal has been trending higher
• Silver’s technical trend remains higher since moving above $21 per ounce
• Three reasons gold and silver should continue to make higher highs
• Silver mining stocks tend to outperform the metal during rallies
• SILJ is the junior mining ETF that diversifies risk- A potential for explosive growth

Silver is a highly volatile precious metal. In 2020, the price traded in an over $18 range. After hitting the lowest level since 2009 at $11.74 in March 2020, during the height of the global pandemic, the price more than doubled. Silver reached the highest price since 2013 when it moved to just below $30 last August. In Q1 2021, silver made a marginally higher high when the continuous futures contract reached $30.35 on February 1. The GameStop (NYSE:) crowd bought silver, but the price ran out of upside steam at the new peak.

Silver mining shares provide leverage when it comes to the metal’s price as they tend to outperform during rallies and underperform during price corrections. The ETFMG Prime Junior Silver Miners ETF product (SILJ) holds a diversified portfolio of the leading junior silver mining companies. While SILJ acts as a leveraged product, it does not suffer from time decay like many other ETF/ETN products that use options and derivatives for gearing.

Silver often follows gold- the yellow metal has been trending higher

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