3 Silver ETFs to Hedge Against Inflation

As financial markets fret and stocks fall over the latest Eurozone Summit
challenges, precious metals are back in their comfort zone moving opposite to
equities. While the glitter of rising gold prices (above $1,723 per ounce
Wednesday) is eye-popping, don't dismiss the shine of silver (over $33). And
silver exchange-traded funds (ETFs) are a convenient way to gain exposure to the
precious metal. Gold and silver traditionally have been safe havens in tough
financial times, providing a hedge against inflation. The 200-point drop in the
Dow on Tuesday was accompanied by rising prices of both precious metals. Gold
and silver continued to trend higher Wednesday on fears stoked by the second
summit in four days to resolve the European debt crisis. Barclays predicted that
strong physical demand would support gold and silver prices in the coming months
"amid the seasonally strong period for consumption. Why buy silver? It's a
less expensive play than gold that still hedges against inflation, it offsets
the portfolio impact of a weak dollar and there's strong industrial demand for
the metal. Why choose ETFs over physical silver? Theyre far more liquid than
physical silver because ETFs trade over an exchange just like a stock. You also
don't have to worry about expenses like delivery, storage and security. It's
also more affordable: The cash commitment to a gold or silver ETF is less
expensive than stockpiling the physical metal. Even so, not all silver ETFs are
alike. Some ETFs are backed by physical silver bullion, others seek to mirror
silver futures contracts and yet others track stocks of mining companies. In
these increasingly uncertain times, here are three silver ETFs one of each
that deserve a closer look: ETFS Physical Silver Shares Shares in the ETFS
Phsyical Silver Shares Trust (AMEX: SIVR ) are backed by physical silver
bullion. At $33.15, SIVR has gained 8.24% during the past month. With a market
cap of $649.74 million, the fund has a one-year return of 42.89%. SIVR shares
are trading nearly 33% below SIVR's 52-week high of $49.28 in May. PowerShares
DB Silver ETF Shares of the PowerShares DB Silver ETF (AMEX: DBS ) track a
rules-based index composed of futures contracts on silver. At $58.11, DBS has
gained 8.01% in the past month. With a market cap of $104.6 million, the fund
has a one-year return of 41.31%. DBS shares are trading 33% below the 52-week
high of $86.98 in April. Global X Silver Miners ETF Shares of the Global X
Silver Miners ETF (AMEX: SIL ) track the price and yield performance of the
Solactive Global Silver Miners Index. At $23.59, SIL has gained 5.93% in the
past month. With a market cap of $336.4 million, the fund has a one-year return
of 24.14%. Shares are trading nearly 25% below the 52-week high of $19.05 in
April. Global X Silver Miners also pays a dividend, with a current yield of
1.02%. As of this writing, Susan J. Aluise did not hold a position in any of the
funds named here.