Strong Fundamentals Could Still Support Precious Metals ETFs

Precious metals exchange traded funds have experienced a wild swing over the past few months, but strong fundamentals could help the asset class maintain its forward momentum.

ETF Trends publisher Tom Lydon spoke with Steven Dunn, U.S. head of Distribution at ETF Securities, at the Inside ETFs conference that ran Jan. 22-25, 2017 to talk about the precious metals market and differing characteristics that each of the metals show.

“There was a little bit of a give back post election… but we’ve already started to see sort of a new rally in 2017,” Dunn said. “You have some really good fundamental reason behind sort of why metals in 2017.”

For instance, Dunn pointed to the rising inflation. Precious metals traditionally do well in inflationary environments as the hard asset acts as a better store of wealth, compared to the weakened currencies.

“The underlying fundamentals for the metals across the the board are really good,” Dunn said.