Why Investors Should Consider Diversifying with Commodity ETFs February 5, 2021
Exchange traded fund investors seeking to diversify a traditional portfolio mix should consider the outlook for commodities and the fundamentals underlying the need for a longer-term, strategic allocation.
In the recent webcast,
Commodity Investing: Past, Present, and Future, Stan Kiang, Director of Strategic Accounts, Aberdeen Standard Investments, highlighted the benefits of commodities as an uncorrelated asset to traditional stock and bond exposures. For instance, the broader commodities category exhibits a correlation of just a little over 0.3 to the S&P 500, where a 0 reading corresponds to no correlation and a 1 reading corresponds to a matching correlation. Commodities also show a correlation of just a little over 0.0 to the Barclays U.S. Aggregate Bond Index.
Analysts Project Silver ETFs to Move Higher after Massive Losses February 4, 2021
Silver futures and ETFs are stabilizing Thursday, as volatility continues to plague the industrial metal’s price, following a failed short squeeze by a group of retail investors.
Silver prices bounced modestly on Wednesday after the market’s significant tumble Tuesday, where silver futures and ETFs lost roughly 10%. The market is still substantially lower from Monday’s almost eight-year highs, but March silver futures are holding a 1.79% gain on the day, while the
Despite the volatility, Goldman Sachs analysts, in a research report published Tuesday, restated their bullish stance for silver, projecting prices to climb as high as $33 an ounce as President Biden pushes onward with a plan to augment alternative renewable energy production.
February 2, 2021
Silver futures and ETF prices tumbled on Tuesday, giving back much of the gains made over the prior few days, as it seems the attempted short squeeze in the silver market by retail traders has quickly lost momentum.
The move in silver dragged down gold, where April gold futures lost more than $26 or 1.35%. Silver futures tumbled roughly 10% to trade near the $26.50 level.
Silver’s monstrous pullback from Monday’s eight-year high of $30.35 in the March futures suggests a failure by retail traders to maintain a short squeeze. The big jump in silver futures caught the attention of the Commodity Futures Trading Commission (CFTC), with acting Chairman Rostin Behnam stating that the futures regulator is “closely monitoring” the activity.
Silver ETFs Fall on Strengthening Dollar, Biden Stimulus Release January 15, 2021
Gold and silver futures prices fell on Friday, prompted partly by a strengthening U.S. dollar index and dipping crude oil prices.
While gold fell 1.35% to roughly $1825 per ounce, silver was hit especially hard, dropping over $1 an ounce to breach $25, hitting a low of $24.61 an ounce. The move dragged silver ETFs lower as well, with the
In addition to the rallying dollar, President-Elect Joe Biden’s stimulus plan was revealed, driving stock markets globally lower on Friday, as it appears markets internalize higher personal and corporate taxes under the Biden administration.
Silver ETFs Strengthen into Year End, With 2021 Looking Bullish December 30, 2020
As the year comes to a close, precious metals and metals ETFs have take a well-deserved breather after a solid performance in 2020. Gold, silver and platinum continue to stay in uptrends, despite falling from their ultimate highs, but have been in consolidation for several months now.
One of the most promising metals of the group is silver, which is up 1.38% Wednesday, to trade at $26.58 an ounce.
With inflation likely a factor in the coming years, silver and gold are poised to benefit. Unlike paper currency and stocks, physical precious metals such as gold and silver are more insulated from inflation because they derive their value differently than paper currency. In addition, a combination of industrial demands for the metal and a preoccupation with safety could bolster silver, according to recent comments from analysts.