Approaching Thanksgiving, Americans at and around retirement age don’t have much to be grateful for in the market this year. With the 60/40 portfolio ceasing to function as expected in a furiously volatile 2022, it’s put them in a tough spot, so now may be an excellent opportunity for investors of all kinds to trust in the value of a silver strategy and its use as an industrial metal via the Sprott Physical Silver Trust (PSLV ).
December silver futures prices hit a nearly 5-month high last Friday, according to Jim Wyckoff at Kitco, with silver on the receiving end of some solid momentum, sitting at $22 per ounce or so at the time of writing on Monday. Silver and Gold stand to benefit should yields drop, and the late October and November rally survive this week’s heavy retail earnings drops as markets enter the holiday season.
For silver itself, investors should be buoyed by the metal’s flexibility in various industries. As a commodity, then, it stands to benefit from a strengthened industrials sector; the Dow Jones Industrials Average (DJIA) rose from 30,185 on October 17 to almost 34,000 on Monday this week, with a separate index, the S&P GSCI Silver Index, which measures the metal’s commodity status returning 14.6% QTD.
Specifically, silver is a vital piece of the solar panel puzzle and precious metal for electrical systems in modern cars, with both primed to benefit from Federal renewable energy investments under the Biden administration.
PSLV charges 60 basis points for its direct exposure to silver bullion, a closed-end trust managed by Sprott Asset Management. The silver strategy has returned 9.1% over one month and 5% over the last three months, beating the ETF Database Category Average, which returned 6.7% over one month. The trust has rebounded from its YTD performance as the year ends, having returned -7.6% YTD.
Retirees watching their retirement investments dip this year have reason to be concerned, but with reliable silver on the up, a silver strategy like PSLV could be the one-two punch of industrial metal exposure and price growth to manage market turbulence until the 60/40 comes back online again.
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