SILJ offers exposure to small-cap, silver-focused mining firms globally, providing a unique way to invest in the silver mining sector. The ETF tracks the Nasdaq Junior Silver Miners Index, emphasizing companies with significant revenue from silver mining, development, and exploration. With $1.52 billion in assets and a 0.69% expense ratio, SILJ is a sizable and accessible option for investors seeking silver miner exposure.
I reiterate my buy rating on SILJ, expecting silver to outperform gold as the gold-to-silver ratio normalizes from historic highs. SILJ offers compelling growth-adjusted valuation, with a PEG ratio under one and a high long-term earnings growth rate of 16.3%. Despite recent weak momentum and mixed technicals, rising trading volume suggests possible institutional accumulation and long-term bullish potential.
Silver's higher volatility compared to gold attracts speculative traders, with silver mining shares like Amplify Junior Silver Miners ETF offering leveraged returns despite higher risk. Tariffs and logistical challenges have tightened U.S. silver markets, pushing prices upward and creating a bullish environment for silver. Silver's long-term bullish trend, supported by strong supply demand fundamentals and a forecasted deficit, suggests significant upside potential.
Silver rises to a multi-year-high. Amplify Junior Silver Miners ETF is the diversified junior silver miners ETF product. The SILJ ETF outperformed silver from August through October 2024.
Silver mining companies have outperformed the broad US and Canadian stock markets in 2024. I have a buy rating on SILJ due to its favorable valuation, strong momentum, and impressive technicals. While SILJ is highly volatile, I see upside ahead despite enhanced volatility around the US election.
For investors seeking momentum, ETFMG Prime Junior Silver Miners ETF SILJ is probably on the radar. The fund just hit a 52-week high and is up 86.5% from its 52-week low price of $7.80/share.
Amplify Junior Silver Miners ETF is the first ETF focusing on small-cap silver miners, providing exposure to a concentrated portfolio of companies involved in silver mining. The SILJ fund charges an expense ratio of 0.69% and offers geographic diversification, with a significant allocation to Canada. Junior silver miners offer potential for magnified returns during bullish periods, but also come with high volatility and financing challenges. SILJ provides a way to access this sector.
Silver remains below its early 2021 high, while gold has reached record highs. Silver futures broke out of a bearish trend and entered a bullish trend, taking 20 months to surpass the $30 level. Rising open interest and increasing prices validate a bullish trend in silver futures markets.