As investor uncertainty continues to add a dose of volatility to the capital markets, precious metals remain in the spotlight as a safe haven play with gold and silver soaring while platinum takes a step back.
“The story in gold remains the same: prices appear to be headed much higher,” wrote Todd Horwitz in a Kitco News article. “The breakout from consolidation about a week ago continues to hold; support has not failed yet. Gold is forming a cup and handles pattern, which indicates a much bigger move is coming. We expect that move will be higher and gold should break through $1,800 August futures as it prepares to make a run at the all-time highs.”
“Silver is setting up a similar pattern to gold, just not quite as bullish but with the possibilities of breaking out big,” Horwitz added. “The key for silver is a close above $18.20 September futures, which would probably take the metal to $20. Of course, there is work to be done, but silver is bullish. It would be no surprise to see soon silver start to outperform gold.”
Platinum prices looked to be moving towards their pre-Covid-19 levels, but have tailed off since then.
“After rallying the last couple of days, platinum looks ready to head lower once again,” Horwitz wrote. “The high for this move would be $840 October futures, which would keep platinum in a downtrend. Our first target on the way down $800 support that breaks $770 and then $750 October futures.”
Buying Into Precious Metals ETFs
Investors looking to get gold exposure can look at funds like SPDR Gold Shares (GLD ) and the SPDR Gold MiniShares (GLDM). Precious metals like gold offer investors an alternative to diversify their holdings, and like other commodities, gold will march to the beat of its own drum compared to the broader market.
As opposed to actually purchasing physical platinum, investors can take advantage of platinum through exchange-traded funds (ETFs) like the Aberdeen Standard Platinum Shares ETF (PPLT ). PPLT seeks to reflect the performance of the price of physical platinum, less the expenses of the Trust’s operations and is designed for investors who want a cost-effective and convenient way to invest in platinum with minimal credit risk.
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.