While America avoided fiscal disaster last week, the U.S. dollar is still sliding lower on a combination of volatility in the short-term Treasury bill market, a credit rating downgrade from the Chinese, and more loose-money talk out of the Federal Reserve. Any slowdown in the ongoing $85-billion-a-month “QE3″ stimulus doesn’t look likely until early 2014 at this point.
In response, investors are bidding up precious metals and industrial metals alike in a big way. Here are three metal ETFs worth a look.
SPDR Gold Trust (GLD)
The SPDR Gold Trust (GLD) has popped over its 20-day moving average for the first time since August as its MACD indicator moves into uptrend territory for the first time since July.
iShares Silver (SLV)
The move in silver is a little more developed than gold’s, as the iShares Silver (SLV) is already attacking its 50-day moving average. Merely a return to the August high would be worth a 10%+ gain from here.
I’ve added a leveraged play, the VelocityShares 3x Silver (USLV), to my Edge Letter Sample Portfolio.
iPath Industrial Metals (JJM)
Although it’s lightly traded, the iPath Industrial Metals (JJM) provides a glimpse of the buying pressure coming into metals like aluminum and lead. If you want to actively trade this, a more liquid play would be the iPath Copper (JJC), which looks ready to emerge from a three-month pennant formation with a new uptrend.
Disclosure: Anthony has recommended UGL and AGQ to his clients.