Gold and silver prices faltered in 2021, but that didn’t crimp demand for bullion sales, which excelled the past year despite the price bearishness for the precious metals.
“Demand this year for United States Mint bullion products fared from strong for silver coins to exceptional for gold coins,” a CoinNews.net article reports, noting that American Eagle silver coins gained by 28,275,000 ounces in 2021, while American Eagle gold coins grew 1,252,500 ounces this year, the most since 2009 with a rise of 48.4% from 2020.
As the global vaccination began at the start of 2021, gold and silver prices started to head lower amid a renewed risk-on sentiment. Gold, for the most part, was stuck in a sideways trading pattern heading towards the end of 2021.
The Federal Reserve is expected to tighten its monetary policy as the economic landscape continues to improve after 2020’s pandemic fiasco. The Fed already started to taper its bond purchases and is looking to raise interest rates this year, which won’t do any favors for gold.
Silver, on the other hand, could fare better. It has a much wider use case compared to gold, giving it more utility as opposed to a store of value.
A Pair of ETF Options for Gold and Silver
Investors looking for ways to own gold outside of traditional coins or bars can opt for gold ETFs. One such fund to consider is the Sprott Physical Gold Trust (PHYS), which gives investors easy access to gold exposure with the option to convert their ownership shares to physical gold.
PHYS invests and holds substantially all of its assets in physical gold bullion. It seeks to provide a secure, convenient, and exchange-traded investment alternative for investors who want to hold physical gold without the inconvenience that is typical of a direct investment in physical gold bullion.
Another option for investors who also want to add silver to their portfolio mix along with gold is the Sprott Physical Gold and Silver Trust (CEF). CEF is a closed-end trust that invests in unencumbered and fully-allocated physical gold and silver bullion in London Good Delivery bar form.
Like PHYS, the goal of CEF is to provide a secure, convenient, and exchange-traded investment alternative for investors who want to hold physical gold and silver without the inconvenience that is typical of a direct investment in physical bullion.
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