ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Gold/Silver/Critical Minerals Channel
  2. Both Silver and Gold Look to Build on Early Price Rally
Gold/Silver/Critical Minerals Channel
Share

Both Silver and Gold Look to Build on Early Price Rally

Ben HernandezJan 19, 2023
2023-01-19

Gold and silver are up higher early in the new year on the expectation that the U.S. Federal Reserve will slow down the pace of its rate hikes. Both precious metals hope to build off that early strength as long as macro and micro economic conditions remain favorable.

“Fed remains the focus. The market is of the view that the Fed’s rate-hike cycle is slowing and may come to an end soon, which is helping gold,” said Ilya Spivak, head of global macro at Tastylive.

“Prices are seeing good support around the $1,900-$1,920 levels," Spivak added. "The next key level of resistance will be around $1,970.”

Investors looking to diversify their portfolios can consider the Sprott Physical Gold Trust PHYS — PHYS provides an enhanced physical bullion structure, offering the ease of purchase and sale that comes with being traded on an exchange. PHYS exclusively invests in London Good Delivery (LGD) physical gold bullion, held in custody by the Royal Canadian Mint, with no levered financial institution getting between unit holders and the trust itself.

As opposed to paying full price for gold bars, PHYS gives investors easy diversification by purchasing shares of PHYS on a regulated exchange — the New York Stock Exchange and the Toronto Stock Exchange. This also gives PHYS a liquidity advantage over physical gold bullion bars, allowing for the easy sale and/or purchase of gold assets.

Certain investors can also take advantage of certain tax benefits associated with PHYS. This could be of benefit to U.S. investors looking to minimize their tax bite for 2023.

“The Trust offers a potential tax advantage for certain non-corporate U.S. investors,” Sprott noted on its product website. “Gains realized on the sale of the Trust’s units can be taxed at a capital gains rate of 15%/20% versus the 28% collectibles rate applied to most precious metals ETFs, coins and bars.”

Green Energy Adoption Sweetens Silver Demand

The world continues to move towards reducing its carbon footprint by investing more in clean energy sources. This could sweeten silver’s demand as a utility metal for building solar panels and electric car batteries, providing a catalyst for more price increases.

“The growing adoption of green energy sources continues to favor fabrication demand for silver … Silver bar and coin demand continued to be high,” ANZ said in a note. “We expect silver to perform well, in tandem with gold, as investors look for cheaper alternatives to gold.”

Investors looking to build off this demand for silver can consider the Sprott Physical Silver Trust (PSLV ). PSLV is a closed-end trust that invests in unencumbered and fully allocated LGD silver bars, providing a secure, convenient, and exchange traded investment alternative for investors who want to hold physical silver easily and efficiently.


Content continues below advertisement

Green Energy Adoption Sweetens Silver Demand

For more news, information, and analysis, visit the Gold & Silver Investing Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X