Dig Into Precious Metal Strength with These Gold Miners ETFs February 2, 2021
Last year’s safe haven scramble saw gold rise to new highs with silver tethering to gold’s success, but it could be the other way around in 2021. Silver prices are jumping, which is helping gold’s cause. ETF traders can play precious metals with a pair of leveraged funds from Direxion Investments.
Rather than play gold directly, traders can use miners via the:
Direxion Daily Jr Gold Miners Bull 3X ETF (JNUG): seeks daily investment results, before fees and expenses, of 200% of the daily performance of the MVIS Global Junior Gold Miners Index. The index includes companies from markets that are freely investable to foreign investors, including “emerging markets,” as that term is defined by the index provider.
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SHANGHAI (Reuters) -Chinese investors rushed into silver investments on Monday, pushing up Shanghai silver prices while boosting performances of related stocks and funds, matching calls by global retail investors to boost prices of the precious metal.
FILE PHOTO: Silver bars are stacked on a table in the safe deposit boxes room of the ProAurum gold house in Munich March 3, 2014. REUTERS/Michael Dalder/File Photo
Retail traders on Reddit and other social media who caused a rally in share prices of U.S. video game retailer GameStop Corp have now turned their attention to silver, leading Chinese investors to also jump on the bandwagon.
Robinhood raises another $2.4bn
In another interesting development, Robinhood has raised another $2.4bn from shareholders just days after investors agreed to provide $1bn to help it through the turmoil that hit markets last week.
Robinhood says the funds will help it âcontinue to invest in record customer growthâ.
In practice, this $3.4bn will help Robinhood meet the higher collateral requirements set by its clearinghouses due to the volatility in stocks such as GameStop, AMC and BlackBerry.
It explains why the company has just felt able to relax the restrictions on GameStop purchases today (see previous post).
In a blog post, Robinhood says:
Gold price boosted by silver-buying frenzy
Stock image.
Spot gold rose 0.8% to $1,863.70 an ounce by 11:50 a.m. EST, trading at a near two-week high. US gold futures on the Comex were also 0.8% higher at $1,865.50 per ounce.
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Silver – often dubbed “poor man’s gold” as it is impacted by the same factors as bullion but is much cheaper to buy – has risen nearly 15% since last Thursday, when posts began circulating on Reddit urging retail investors to buy silver mining stocks and iShares Silver Trust, an exchange-traded fund (ETF) backed by physical silver bars, in a similar fashion to the GameStop short squeeze.