2016 Has a Silver Lining

The Market Gage - Dillon Gage's Precious Metals Newsletter

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.

Disclaimer: This editorial has been prepared by the staff of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.