iShares Silver Trust (ETF)
Since early August, silver prices have risen approximately 20 percent. Can investors expect this short-term trend in rising silver prices to continue?
There are at least two compelling argument scenarios to support this. The first scenario is that precious metals like silver and gold have historically served as hedges against both inflation and economic downturn. The second scenario is that while both precious metals are used in a multitude of more »
Gold hasn’t performed well during the year: The price of gold has fallen by more than 20%. This tumble has also adversely affected gold companies such as Barrick Gold (NYSE: ABX). Shares of the company have plummeted more than 50% (year-to-date). But in the past month, the company’s stock has bounced back and rose nearly 10%. This rally coincided with the recovery of the gold market. Will this more »
Since peaking in 2011, precious metals have fallen off the cliff and silver has been leading the decline. Year-to-date, silver has lost an incredible 35%, shedding more than 12% in just one week in April. In fact, silver has lost so much glitter that it is now cheap, and over the long run it is an almost-perfect contrarian play. These low prices have created unique opportunities to buy silver and more »
I recently wrote about how intelligent investors can diversify their portfolios using gold investments. Gold is, however, not the only historically monetary precious metal that has been beaten down lately – silver also has the potential to resume its decade-plus upward trend.
Silver is not as rare as gold and has industrial uses to go along with its monetary properties. Because of this increased supply and demand, silver currently trades for more »
Gold recently had its biggest quarterly loss since 1974 -- dropping by more than 20% from April to the end of June. The price of gold (and precious metals in general) plummeted because rising interest rates and an improved US economy make other investment vehicles look more attractive and lessen demand. Based on a cursory analysis of July, a month where gold is up slightly so far, it looks like the more »
Have you been long gold or silver since 2008? If so, you might remember how long it took for quantitative easing, or QE, to sway these precious metals to the upside.
As the Federal Reserve created more money, you waited and waited for gold to move higher, unconsciously clenching your fists whenever you looked at the ticker, and frantically chasing fantasies of financial freedom in your mind. It was a more »
Last week, Ben Bernanke announced to Congress that if recovery trends continue, the Federal Reserve will begin to taper its purchase of government-backed securities. When the Fed cuts back on purchases, interest rates will rise, and government securities will become more appealing. Investors will likely follow the higher yield, selling their positions in the stock market, and sending stocks into a slump.
Since 2008, the Fed has driven the 10-year more »
I think we’re going into a tough quarter for Goldman Sachs (NYSE: GS). The bank will find it difficult to thrive with all this market volatility.
Goldman Sachs institutional client services
Source: Goldman Sachs
In the first quarter, Goldman Sachs reported a 10% year-over-year decline in its institutional client-services segment, which handles all of the fixed income, currency, and commodities execution. With the recent decline in the price of more »
Oh how I wish I would've been short gold and silver today (June 20, 2013). I had liquidated all positions for safety earlier this week in anticipation of the FOMC meeting outcome potentially moving the markets (and boy did it!). I had a brief moment of bravery yesterday and almost entered a short silver position, but I played it safe.
Of course, I'm kicking myself for not having more »
In a recent, interesting article on the Fool’s blog network the author tries to settle which precious metal, gold or silver, is a better investment and serves as a better hedge against inflation. But do these metals serve as a good inflation hedge to begin with? I would like to tackle this issue and examine how well precious metals have protected your portfolio against inflation in recent years; let more »
There are several good reasons to consider adding silver to your portfolio including:
- Silver's low correlation to other asset reduces risk in a long-term portfolio.
- Silver acts as a store of wealth during times of high inflation and serves as a hedge against declines in the U.S. dollar.
- Unlike gold, silver has many more industrial uses.
Fortunately for investors the advent of silver exchange traded funds, or ETFs more »
For investors interested in precious metals, it really comes down to one decision: silver or gold? Although they frequently trade in tandem, and are often purchased for the same reasons, they are far from identical.
Each metal has its own trade-offs. I'll break down the relative arguments for owning one over the other, and then suggest ways for interested investors to get exposure.
The case for silver
Silver is more »
Silver investors often make noise of the disconnect in pricing between “paper” and “physical” silver. Many believe that the disparity is a sign of market manipulation. Why should physical silver – coins, bullion bars, or scrap silver – trade at a premium to silver on a futures exchange?
In all reality, some small spread between paper and physical silver is tolerable, if not expected. Physical silver is costlier to store, more expensive more »
Oh, the lonesome goldbug. Always on the fringes of the financial community but finally vindicated after a 12-year bull run in precious metal prices.
However, today goldbugs are under fire. Gold and silver prices, as measured by the SPDR Gold Trust (NYSEMKT: GLD) and the iShares Silver Trust (NYSEMKT: SLV), are down 25% and 30% year-to-date, respectively.
So what went wrong? Two holes are emerging in the bull thesis.
No more »
I've made my fair share of bad trades over the years. But with every poor decision I've made, I've seen it as an opportunity to learn something.
The following is a list of the three worst investment decisions I've ever had the misfortune of making, and the resulting lessons I took away from them. Hopefully, readers can avoid making these mistakes for themselves.
Holding leveraged ETFs more »
Allied Nevada’s (NYSE:ANV) stock surged after the company reported its preliminary Q1-2013 results. The business is one of the key players of Nevada’s current gold rush and owns more than 100 exploration properties at various stages of production throughout the state. The company’s stock has bounced finally after almost touching the 52-week low as it informed investors that it was going to meet its six-month guidance more »
Today is a day of extreme weakness in the monetary metals gold (GLD) and silver (SLV). Ostensibly, it is due to the draft plan by Cyprus to sell gold as part of its bailout.
This is an interesting explanation but I believe the main reason is simply that owning gold and silver is an overcrowded trade.
With central banks especially in Japan and USA monetizing their debt without any end more »
Gold recently struck six-month lows as key players like billionaire George Soros and others cut their holdings of the yellow metal. Silver was quick to follow in the sell off. Both the SPDR Gold Trust (NYSEMKT: GLD) and the iShares Silver Trust (NYSEMKT: SLV) recently traded lower for five consecutive days.
Investors are now left to wonder if the recent selling pressure is just a sign to come. If a more »
When I was a kid I used to go to the local coin shop with money that I earned mowing lawns and buy an ounce or two or five every now and then – usually about once a month. Gold was too expensive for a kid from a middle class family. But back then an ounce of silver was around $4 – $5 compared to the $30 that it is today.
In more »
Any way you slice it, investors holding less than 10% of their assets in gold and silver do not understand the “risk” they are taking in a HYPERINFLATION scenario. Our Covestor.com portfolios today hold about 10% in precious metals and another 15%-20% in hard assets like oil and gas, plus real estate investments. The risk of holding gold and silver is FAR LOWER than not owning it, if a monster inflation orgy upmove starts in early 2013. Rising rates of inflation from here would decimate bond values and pricing. Related economic dislocations, including changing discount rates on earnings by stock investors could depress business values for years to come, much like the 1970s instance of high inflation.
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