The recent stock market rally has allowed investors to regain some of the losses they endured last year. Commodities like silver and gold are no exception. You’d think with a strong equities martket they would be, but nope, this isn’t the case.
Instead, with the dollar looking to weaken based on a fed that continues to print money, precious metals may be a good buy. So how do you get into precious metals?
Well, one way is to buy ETFs like the silver trust ETF SLV. These types of funds allow you to directly invest in silver and gold without having to buy the precious metals themselves. But the question is, will silver, and likewise SLV be abel to survive the market rally? We think yes. Even though gold and silver have had amazing gains, we think they will continue to do so.
Although this is just our opinion, you have to look at what might cause this. Inflation, due to all that money printing, may cause investors, who like to hedge against downside risk of their dollars being worth less, by investing in silver. Others may want to play the silver game based on the fact that china and markets like it, namely india, are expanding at a rapid pace, and all those people are going to need things with gold or silver in them.
That’s why, it may be prudent just to keep a little SLV or GLD in your portfolio for the time being.
