If selling pressure on the stock market hasn’t subsided as of yet, look for safe haven assets like gold and silver to see more upward pressure. Despite a rising dollar, gold has remained resilient as inflation fears continue to swirl in the capital markets.
“My concern about a near-term ‘waterfall event’ in the broader markets… is higher now than it has been since 2021,” said Lobo Tiggre, of The Independent Speculator, in a Kitco News report. “I don’t want to be putting any more cash at risk right now… I sold everything.”
“People are dumping stocks, they’re buying bonds, even though the Fed is going to be selling because there’s fear in the air,” Tiggre explained. “So to see gold still holding 1,800 [USD] in the face of these headwinds tells you something.”
One backdoor play on rising gold prices is using miners. Exchange traded funds (ETFs) can provide that level of exposure via funds from Global X such as the Global X Gold Explorers ETF (GOEX).
GOEX seeks to provide investment results that generally correspond to the price and yield performance of the Solactive Global Gold Explorers & Developers Total Return Index. The index is a free float-adjusted, liquidity-tested, and market capitalization-weighted index designed to measure broad-based equity market performance of global companies involved in gold exploration.
GOEX gives investors:
- Targeted exposure: GOEX is a targeted play on gold exploration.
- Appeal of gold: Historically, investors have turned to gold as a potential store of value — particularly during periods of volatility.
- ETF efficiency: In a single trade, GOEX delivers efficient access to a basket of companies involved in the exploration of gold.
A Silver Option
Silver can also serve as a safe haven asset, but its industrial use also makes it an ideal inflation hedge as prices of silver rise. That said, investors will want to look at the Global X Silver Miners ETF (SIL).
Per the fund’s description, SIL seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Silver Miners Total Return Index. Overall, the fund provides investors access to a broad range of silver mining companies.
SIL offers investors:
- Targeted exposure: SIL is a targeted play on silver mining.
- ETF efficiency: In a single trade, SIL delivers efficient access to a basket of companies involved in the mining of silver.
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