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Get Paid to Wait on a Silver Resurgence

BY | ETF Database
5:31 am ET 10/27/26 | 18 VIEWS
Like its pricier counterpart gold, silver has been taken to task this year. Its YTD loss sported by the largest ETF by physical holdings of silver is more than triple that of its gold counterpart. But there’s still a compelling long-term outlook for the white metal.The rub is twofold. First, pinpointing exactly when the white metal and related traditional ETFs will bounce back is a fool’s errand. Second, the metal doesn’t feature dividends or interest payments. That means investors aren’t compensated for their patience. The NEOS Silver High Income ETF (SLVI), which debuted earlier this month, solves the no-income silver riddle. As is the case with other options income ETFs in the NEOS stable, the actively managed SLVI employs a straightforward approach to generating income. In this case, the new ETF writes covered calls on the bellwether physically backed metal ETF.Good Time to Size Up Silver ETF SLVIThe white metal is languishing in the mid-$50 per ounce range. So it’s understandable some investors are ignoring the commodity, particularly as gold scuffles. But there’s a case for SLVI. For example, UBS Global Wealth Management believes the white metal can make a run to $70 before the end of this year before ascending to $80 per ounce by September 2027. “Silver continues to behave like a higher-beta version of gold, benefiting, and suffering, from many of the same macro forces,” observed UBS strategist Giovanni Staunovo. Although the bank didn’t explicitly mention SLVI, UBS’s comments on the metal may signal the advantages of SLVI’s get-paid-to-wait strategy. The bank cautions investors to not run after the white metal rallies, but rather use pullbacks to get involved. That’s probably smart advice at a time when the Federal Reserve is expected to again boost interest rates. Indeed, silver, like gold, is showing it’s beholden to interest rates. That’s because prices are faltering even as the silver market will be in a supply deficit for a sixth straight year. That may be a sign the metal is offering value and that investors aren’t fully appreciating demand trends. This could bolster the case for SLVI. “Several silver applications continue to benefit from favorable structural growth trends. In particular, the expansion of data centers, artificial intelligence-related technologies, and the automotive sector are expected to support silver consumption across a range of industrial end-uses, partially offsetting the decline in PV-related demand,” according to the Silver Institute. For more news, information, and analysis, visit the Tax Efficient Income Content Hub.

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