Experts point out great potential for price increase for silver

In a recent interview, Nate Miller - Vice President of Product Development at Amplify ETFs - said that strong investment demand has fueled the significant development of silver.

The Amplify Junior Silver Miners ETF (NYSE: SILJ) has almost doubled its scale, with assets under management at around $1.8 billion.

Amplify has also added a new ETF: Amplify SILJ covered Call ETF (NYSE: SLJY), investing in the purchase options for a portfolio of small-scale silver mining companies.

SLJY's strategy is to sell out-of-the-money buying options, in order to generate income from fluctuations in stocks in the portfolio.

The launch of this new options ETF comes in the context of silver increasing by more than 30% since the beginning of the year and even surpassing gold in recent months. The gold/ silwer ratio is currently over 88, down from a peak of more than 104 in April.

Siliver has increased strongly this year and we believe that there is still room for breakthroughs. We continue to see two main factors creating a strong driver for silver this year, Miller said.

He said that silver is benefiting both as an industrial metal and a currency. The global shift to green energy is boosting demand for solar power, in which silver is still an essential component of photovoltaic panels. According to Silver Institute's estimate, the solar energy industry will consume a record 140 million ounces of silver this year.

Miller added that the electrification of the US economy and the increased demand for new data centers will continue to create long-term demand for silver. At the same time, increasing economic instability and global trade wars are pushing inflation higher, causing demand for silver to preserve purchasing power to increase.

Siliver has an endogenous value that investors are starting to see, and we dont think that will change anytime soon, he said.

Miller also pointed to positive technical factors, as the gold/ silwer ratio remains high compared to the historical average of about 65. If this ratio returns to normal, lets hope gold stays the same, silver should be around $50-52/ounce. Even after the current increase, we still see great growth potential for silver, he said.

Meanwhile, Christian Magoon - CEO of Amplify - said that this is an interesting time to keep an eye on silver as prices are fluctuating at important resistance levels. If prices surpass $39 an ounce, we will see a real price discovery process, he said.

Miller emphasized that Amplify's new silver option ETF offers an attractive opportunity because it helps investors get a yield from a non-yielding precious metal. According to the company, SLJY aims to generate income from the option fee at 18%/year.

Since silver has increased sharply this year, many investors are looking at and looking for reasons to buy but often cannot justify it because silver is not profitable, Miller said. We hope this product will open up opportunities for investors, both diversifying their portfolios and generating additional income.