The demand for precious metals is still healthy among investors, especially with exchange traded funds (ETFs). Both related ETFs have had record highs this month alone.
In June, both silver and gold consolidated, however, this has not hindered the popularity of either of the safe-haven metals. Adam Hamilton for GoldSeek reports that the popular precious metals ETFs have created conduits for large pools of market money to move quickly into silver and gold.
The subsequent ETFs have allowed non-traditional precious metals investors access this area of the market with ease. Since its launch in 2004, the SPDR Gold Shares (GLD) fund has gone on to become one of the most successful ETFs in history. It’s now the second-largest ETF in the world, behind only the SPDRs (SPY).
And despite concerns that these funds might contribute to volatility in the underlying metals, Hamilton finds that they really haven’t because most investors tend to stick with the funds once they buy, instead of actively buying and selling them.
- SPDR Gold Shares (GLD): up 6.7% year-to-date
- iShares Silver Trust (SLV): up 23.3% year-to-date
For more stories on silver and gold, visit our precious metals category.
For full disclosure, Tom Lydon’s clients own shares of GLD and SLV.
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.