Most market experts will agree that precious metals provide investors with a safe haven opportunity amid all the market uncertainty going on. However, when it comes to traders, which metal should they focus on for short-term gains?
“Heading into the US sessions precious metals are performing well,” a Kitco News article said. “Silver is one of the best-performing metals and trades just over 2% higher bested only by zinc (2.37%). As you can see from the 4-hour gold futures chart below, the price is still stuck between some key technical levels.”
“The price did bounce off the bottom trendline but the resistance level at $1915 per ounce is still holding firm,” the article added. “If the bulls are to take control of the market then the downward sloping trendline and blue previous wave high at $1939 would need to be taken out. Keep an eye on these levels during the US session.”
The Silver Bullet?
ETF investors looking to get in on the silver action can look to funds like the iShares Silver Trust (SLV ) and the Aberdeen Standard Physical Silver Shares ETF (SIVR ), two of the largest ETFs backed by holdings of physical silver:
- SLV seeks to reflect generally the performance of the price of silver. The Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities. It is not actively managed. The Trust does not engage in any activities designed to obtain a profit from, or to ameliorate losses caused by, changes in the price of silver.
- SIVR seeks to replicate, net of expenses, the price of silver bullion. The shares are backed by physically allocated silver bullion held by the custodian. All physical silver held conforms to the London Bullion Market Association’s rules for good delivery.
For those looking for leverage, they can look to ETFs like the VelocityShares 3x Long Silver ETN Linked to the S&P GSCI Silver Index ER (USLV ) and the ProShares Ultra Silver (AGQ ).
Mining for Gold
Bullish gold investors can use miners as a play on the precious metal:
- VanEck Vectors Gold Miners (GDX ): seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE® Arca Gold Miners Index®. The index is a modified market-capitalization weighted index primarily comprised of publicly traded companies involved in the mining for gold and silver.
- Direxion Daily Jr Gold Miners Bull 3X ETF (JNUG ): seeks daily investment results, before fees and expenses, of 200% of the daily performance of the MVIS Global Junior Gold Miners Index. The index includes companies from markets that are freely investable to foreign investors, including “emerging markets,” as that term is defined by the index provider.
- Direxion Daily Gold Miners Bull 3X ETF (NUGT ): seeks daily investment results, before fees and expenses, of 200% of the daily performance of the NYSE Arca Gold Miners Index. The index is comprised of publicly traded companies that operate globally in both developed and emerging markets, and are involved primarily in the mining for gold and, in mining for silver.
