As we get deeper into the holiday season and 2023 winds down, technical indicators could reveal that silver bulls could benefit as the new year fast approaches.
Over the past year, the precious metal has been rising just above 6% despite an ever-increasing dollar amid the Fed’s tightening of monetary policy. Recent geopolitical events have spurred a demand for safe haven assets like this precious metal, causing it to push more than 3% higher the past month. If technical indicators prove correct, that bullishness could continue.
“Silver has been exhibiting a strong bullish trend, and it recently broke out of a key resistance level,” Kitco News noted. “This breakout suggests that silver could be poised for a significant rally, potentially reaching $50 per ounce in the near future.”
Of course, one of the features of investing in this precious metal is its uncorrelation to the broad market, giving it diversification benefits to an investor’s portfolio. Given the precious metal’s recent tilt toward the upside, this metal’s bullion could make for a timely holiday gift.
“Investors should consider adding silver to their portfolios to capture this potential upside,” Kitco added.
One of the attractive features of investing is the precious metal offers the duality of serving as a safe haven asset as well as its industrial usage. This can help the metal thrive during market upside and downside, offering further versatility and portfolio diversification.
Silver Exposure Options
To get exposure to the metal directly, consider using the Sprott Physical Silver Trust (PSLV). The fund provides exposure to the precious metal without the additional hassle of storing the precious metal. It invests in unencumbered and fully allocated London Good Delivery (LGD) silver bars.
Shareholders can redeem their shares for physical bullion anywhere in the world (subject to certain minimum conditions). Redemptions of shares do not dilute the trust’s exposure for remaining shareholders still invested in the fund.
Investors may also want exposure to gold’s safe haven status mixed with silver’s versatility. If that’s the case, then consider the Sprott Physical Gold and Silver Trust (CEF), which is a closed-end trust that invests in unencumbered and fully allocated physical gold and silver bullion in LGD bar form.
Overall, 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 typical of a direct investment in physical bullion.
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