Forget Gold, Buy Silver ETFs Instead … Gold bullion exchange-traded fund SPDR Gold Shares ETF (NYSEARCA:GLD) is up over 27% so far this year (as of August 1, 2016). Investors should note that not only gold, most precious metals are on a tear this year on a subdued greenback, as these metals are linked to the U.S. dollar. –Seeking Alpha
This article, excerpted above, makes the case for buying silver ETFs.
With the recent announcement of a quarter point easing by the Bank of England, most major economies are once more in a “loosening” mode.
Europe and Japan are pursuing various forms of quantitative easing and the Britain will join them in this as well.
In the US, the 3-4 rate cuts that Janet Yellen was contemplating for 2016 has turned into a single rate hike thus far – that took place in late 2015.
Central banks have cut so deeply at this point that a number of currencies are actually operating with negative interest rates.
Banks wish to charge customers for their services. Money is so plentiful that storing it has become a chore.
Within this context, both gold and silver continue to make progress against the dollar.
Unlike paper currencies, gold and silver cannot be manufactured at the push of a button. Meanwhile, central banks have printed something like US$50 trillion or more since 2008.
The world is awash in paper money.
Notably, gold is trading at $1,356.40 to start August … Some analysts … expect the metal to hit $1,425 an ounce by the end of Q3 …
But this article suggests investors consider silver as well:
Like gold, silver also serves as a safe haven. So, with still shaky investor sentiments given lower-than-expected Q2 U.S. GDP growth, markets may turn edgy ahead and boost safe-haven metals like silver.
Investors should note that silver was a bit late in joining the precious metal party this year. So, due to its late entry into the rally, the bullishness in silver is likely to last longer than gold, according to some analysts.
After such a stupendous surge in the yellow metal, many investors would like to bet on its low-priced cousin. Also, many investors view silver as a leveraged play of gold, as per ETF Securities.
So, while you can play gold ETFs like GLD or the iShares Gold Trust ETF (NYSEARCA:IAU) with a short-term view, it might be better to tap silver ETFs.
… While GLD added about 0.6% in the last one-month time frame (as of August 1, 2016), the silver bullion fund iShares Silver Trust ETF (NYSEARCA:SLV) added about 3.7%.
The downside to ETFs, of course, is that they may not have the metal they claim backs their shares. Nonetheless, ETFs certainly offer a convenient alternative to purchasing the metal itself.
Another possibility when it comes to metals investing is purchasing shares in mining companies.
Mining companies may be more of a gamble than purchasing the metal itself of course.
If a mining company doesn’t strike gold or silver, then the shares of that company may be worthless even though the metal it seeks is increasingly valuable.
But if the mining company makes a decent strike, then the leverage may provide its shares value far in excess of the price of gold and silver.
The Daily Bell has a sponsor, Golden Arrow, with various promising mining properties. Among these is the Chinchillas project which hosts a resource of 100 million ounces of silver/155 million ounces silver equivalent (AgEq) in the Measured & Indicated categories and 44 million ounces silver /90 million ounces (AgEq) in the Inferred category.
The resource estimate is part of the Chinchillas Project prefeasibility study, funded by Silver Standard, which is being undertaken to evaluate the combination of Silver Standard’s producing Pirquitas mine and our Chinchillas deposit, as announced October 1st, 2015.
Those who wish to investigate silver mining properties may want to consider the Chinchillas project. You can see the Golden Arrow website HERE, which contains information on Chinchillas.
Golden Arrow Contact: Shawn: 1-800-901-0058 or 778-686-0135.
GOLDEN ARROW RESOURCES is a sponsor of The Daily Bell under a new marketing program. The company welcomes your interest and support. Please consult DB’s disclaimer before making investment decisions. This is not an endorsement.