Barclays’ Silver Fund Cleared for Trading

The Securities and Exchange Commission said Thursday that it had cleared a new investment vehicle for silver, driving silver futures sharply higher before profit taking took the shine off prices.

The SEC approved the registration filed by Barclays Global Investors for its iShares Silver Trust, removing the final regulatory obstacle to trading in the innovative exchange-traded fund that will allow money managers to mimic investment in silver bullion without the hassle of storage and transport.

At the Comex division of the New York Mercantile Exchange, silver briefly surged about 2% on news of the approval amid hopes for new investment in the metal.

But the market has been extremely volatile, and Comex silver for July delivery ended 34.9 cents lower at $12.59 an ounce.