March 17, 2021
Pay enough attention to the silver market this year and you’re sure to hear something about short covering and squeezes.
That chatter is starting up again, and it could be to the benefit of the
“Silver once again outperformed Gold today by gains, Silver is up just over 1%, while Gold gained only 0.24%. According to the CFTC data as of March 9, there is a 20,000 spread between the overall net positions on Silver Futures, with an edge going to short positions,” reports
PSLV is a closed-end fund that lets investors redeem large blocks of shares in exchange for delivery of silver bullion.
Gold Blues as Silver Woos
February was a tough month for gold, which marked its worst monthly performance since November 2016. Spot gold fell $114/oz, or 6.15%, to close the month at $1,734/oz. Half of this decline came in the two final days of February, as bond selling spiked into near panic mode and triggered a multi-asset sell-off into month-end. Figure 1 shows how gold has been inversely correlated to bond yields.
February’s pullback occurred on the back of various developments. Rising energy prices and the markets’ view on U.S. government spending bolstered the reflation trade with a rally in broader equity markets. The U.S. dollar strengthened as markets priced in a swift economic recovery and as U.S. Treasury yields advanced to the highest level in a year, with the 30-year bond rising above 2% and the rapid move in the 10-year to over 1.5%, which we will discuss in more detail. Meanwhile, gold ETFs saw holdings decline towards the end of February. Silver prices held up m
Should You Buy Gold Mining ETFs on the Dip? March 15, 2021
Recent lethargy in gold might seem to be unappealing, but it could also spell opportunity for investors embracing high quality mining assets, such as those found in the
SGDM tracks the Solactive Gold Miners Custom Factors Index and “emphasizes gold companies with the highest revenue growth and free cash flow yield, and the lowest long-term debt to equity ratio,” according to the issuer.
The fund’s focus on quality, one that traditional peers often lack, may help investors position for a rebound in mining equities.
“The gold market has struggled early in 2021 as bond yields have spiked to a one-year high. However, Rory Townsend, head of gold research at Wood Mackenzie, said in a telephone interview with Kitco News on the sidelines of the Prospectors & Developers Association of Canada (PDAC) virtual mining conference that he sees the rise in bond yields as a bit of a head fake and that gold prices should recover