While it seems that the financial media is rightfully focusing on the uplift in the gold market, let’s not leave silver back at the proverbial train station. Silver, in fact, has done even better YTD in 2016. While gold is up approximately 27% YTD, silver has rocketed up in value over 44% YTD. Many investors are happy to use silver as a hedge against any future volatility in the gold market. One precious metal protecting another can elicit an amazing outcome.
It’s not just physical silver that’s catching investor’s eyes. The silver exchange traded fund (ETF) market has had a record-setting amount of activity so far in 2016, what we call “inflow.” ETF holdings in ounces have jumped from 43 million ounces to 662 million—a record high. Net long position of COMEX silver futures are also skyrocketing, from over 6,200 contracts at the close of 2015 to around 80,000. Now that’s a shiny silver lining if there ever was one!
In the coin market, interest in silver is up almost 30% over 2015—which was a record-setting year of its own. Portfolio diversification is a great fit for silver due to its fundamentals.
This Morning’s Market Snapshot
After taking a hit on Friday from the positive U.S. Jobs reports, all four metals managed to find and maintain a :
- Gold– Slightly off Friday, but still I the mid-$1,330s
- Silver– After dipping about $.20, Silver has regained its berth in the mid-$19.80s
- Platinum– This is the lone metal that has almost regained its pre-Jobs report level and is sitting at the mid-$1,150s.
- Palladium– This metal has struggled a bit dipping to $690 overnight, currently hovering at $695.
Here’s hoping your week gets off to a wonderful start…
Walter Pehowich is on vacation, so today’s commentary was compiled by Dillon Gage Staff.
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