"Shining Silver"… Silver hits highest price in 13 years, ETF also up 20%

With silver prices reaching their highest level in 13 years, financial products containing silver have also soared nearly 20% this year.

According to the New York Mercantile Exchange (COMEX), as of the 9th (local time), July silver futures closed at $36.26. Silver futures have risen by 24.01% this year, reaching their highest price in about 13 years and 4 months since February 28, 2012 ($37.13).

At the London Bullion Market Association (LBMA), the spot price of silver closed at $36.18 per troy ounce as of the 6th. This is also the highest price in about 13 years and 4 months since February 29, 2012 ($37.23).

The surge in silver prices has driven up the returns of silver-related financial products. The Korea-listed silver ETF "KODEX Silver Futures ETF (H)" has increased by 19.16% so far this year. Silver exchange-traded notes (ETNs) are all recording double-digit returns as well. Especially, leveraged ETN products such as Shinhan Leveraged Silver Futures ETN (H) (36.90%), N2 Leveraged Silver Futures ETN (H) (36.80%), and KB Leveraged Silver Futures ETN (H) (36.74%) have surpassed 30% returns.

Recently, as silver prices have soared, the gold-to-silver ratio, representing the relative value of silver to gold, fell to the 91-to-1 level. This means one troy ounce of gold can be exchanged for 91 troy ounces of silver. The higher the gold-to-silver ratio, the more undervalued silver is considered. In early April, when gold prices were soaring, the ratio was at the 104-to-1 level.

Although silver prices are rising, it is still considered attractive. Silver is classified as a precious metal along with gold, but also has potential to rise as it is used as an industrial raw material for solar panels, batteries, and medical devices.

Kim So-yeon, Hankyung.com reporter sue123@hankyung.com