Additionally, the strategist contends that many other precious metals demand indicators have increased sharply. Silver, platinum and palladium have greater industrial applications, which may support the precious metals. McGlone points out that platinum and palladium see huge demand for vehicle emission controls, notably among emerging markets where a rising middle class are increasing discretionary spending.
“Technology is generally a demand factor for precious metals,” McGlone said. ‘Technological innovation and demographic changes are driving an energy paradigm shift.”
For instance, the ongoing shift toward alternative and renewable energy sources, like solar, would bolster silver demand as the precious metal is a component in photovoltaic panels.
Over the past three-months, the ETFS Physical Silver Shares (NYSEArca: SIVR) rose 8.8%, ETFS Physical Palladium Shares (NYSEArca: PALL) gained 9.2% and ETFS Physical Platinum Shares (NYSEArca: PPLT) added 1.2%. However, the metals are still underperforming this year, with SIVR up 1.8%, PALL 15.3% lower and PPLT down 17.6% year-to-date.
“Precious metals appear under priced and offer attractive investment and diversification attributes, notably in a basket,” McGlone added.
Investors who want a more diversified approach to precious metals can also take a look at the ETFS Physical Precious Metals Basket Shares (NYSEArca: GLTR) and ETFS Physical White Metals Basket Share (NYSEArca: WITE). Year-to-date, GLTR is down 3.7% and WITE is 8.4% lower.
GLTR tracks the four precious metals, including gold 57.9%, silver 28.8%, palladium 6.8% and platinum 6.6%. WITE, on the other hand, only focuses on the white metals, including silver 50.7%, platinum 31.8% and palladium 17.5%.
Financial advisors who are interested in learning more about investing in commodities and precious metals can listen to the webcast here on demand.