This ETF is designed to hold physical silver bars in vaults in London and New York as a proxy to directly owning this precious metal. Related Link: 3 Global ETFs With Sky-High Dividends Falling interest rates and a rising U.S. dollar have been additional reasons for investors to sell silver as an inflation hedge. Precious metals like gold and silver started off the year with much promise after staging a counter trend rally that defied their tremendous fall last year.