Precious metals are jumping higher as investors seek the safe havens of de-risking assets in order to shore up their portfolios amid the Russian invasion of Ukraine. Gold and silver, specifically, will move depending on what news comes out of Ukraine.
Gold and silver prices could both fall if Russia is willing to come to the negotiation table with Ukraine in order to stave off further conflict. That could potentially bring investors out of safe assets and turn the risk dial back on to full bore.
“The Russia-Ukraine war continues on the front burner of the marketplace to end the trading week,” Kitco News reports. “There is still risk aversion in the marketplace. However, it can be argued that marketplace anxiety is not as high as it was early Thursday, amid the reports Russia may negotiate.”
“Also, U.S. and western country sanctions against Russia are being deemed not as severe as expected, including no sanctions on Russian crude oil or natural gas industries,” the report adds further.
2 ETNs to Play the Moves
A pair of exchange-traded notes (ETNs) can allow investors to play the bullishness in precious metals. For gold, investors can look at the Credit Suisse X-Links Gold Shares Covered Call ETN (GLDI).
The fund’s index measures the return of a covered call strategy on the shares of the SPDR® Gold Trust (the GLD Shares) by reflecting changes in the price of the GLD Shares and the notional option premiums received from the sale of monthly call options on the GLD Shares less notional trading costs incurred in connection with the covered call strategy.
For silver, investors can look at the Credit Suisse X-Links Silver Shares Covered Call ETN (SLVO). The ETN measures the return of a covered call strategy on the shares of the iShares® Silver Trust (the SLV Shares) by reflecting changes in the price of the SLV Shares and the notional option premiums received from the notional sale of monthly call options on the SLV Shares less notional transaction costs incurred in connection with the covered call strategy.
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