How Precious Metal ETFs Have Changed Investing

January 18th at 1:00pm by Tom Lydon

110_F_1663891_ZpI2UEU5BmO852iXdFzaBv2UjK5XHf The rules of supply and demand are theĀ  biggest factor in determining the price of a commodity. That said, the introduction of precious metal exchange traded funds (ETFs) could be just the beginning of big changes.

Jeffrey Lewis for GoldSeek has reasons why the metals craze is bound to grow and ultimately impact prices:

  • New Consumer Level Products. Firms are lining up to sell gold and silver coins on TV and in the news, and local coin shops are sold out. The number of companies wanting your unused gold and silver has exploded.
  • Mid-Range Offerings. Wall Street knows that investors want to own gold and silver without physical delivery, so ETFs have taken center stage by offering easy exposure to the precious metals markets. [The ETFs are highly anticipated.]
  • Buying makes sense. In the last decade, gold and silver soared more than 400% with nary a glance from most investors.
  • New investing outlook. People are protecting their wealth while they grow it and in an effort to hedge against another “lost decade,” investors have found greater appeal and comfort in tangibles. [Why mining shares should also be supported.]
  • A Normal Cycle. Historically, silver and gold have always represented wealth, and as hot stocks come and go, silver and gold remain ever-present and consistent. [Gold prices are going to keep climbing.]

For more stories about precious metals, visit our precious metals category.

  • Market Vectors Gold Miners (NYSEArca: GDX)

  • ETFS Gold Trust (NYSEArca: SGOL)

  • iShares Silver Trust (NYSEArca: SLV)

  • SPDR Gold Shares (NYSEArca: GLD)

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.