A report from BNP Paribas indicates that despite the drop in silver prices in December in 2012, there was an overall rise in net inflows into silver ETFs amounting to 311 metric tons for that month, or a monthly increase of 1.6 percent.
Most of this inflow went into iShares Silver Trust (NYSE: SLV), the largest silver-backed ETF.
But December also saw a 12 percent price drop in London trading; on the New York Comex, silver prices SIH decreased 9.1 percent.
MarketWatch quotes the BNP report:
“Given silver’s property as a geared play on gold, the metal could potentially see a bigger decline in the very short term, like that seen in non-commercial futures positions,” said BNP.
Gold performance, on the other hand, was more stable, and BNP indicates an optimistic outlook for both gold and silver.
Net gold ETF inflows over 2012 was up 12 percent, at 287.2 metric tons. Silver ETFs were up 8.4 percent, at 1482.2 metric tons.
iShares Silver Trust was up 1.47% on Thursday to $29.78.
