3 Metal ETFs on the Move

by Anthony Mirhaydari | October 22, 2013 10:11 am

3 Metal ETFs on the Move

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)

1022 GLD 3 Metal ETFs on the Move

The SPDR Gold Trust (GLD[1]) 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)

1022 SLV 3 Metal ETFs on the Move

The move in silver is a little more developed than gold’s, as the iShares Silver (SLV[2]) 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[3]), to my Edge Letter Sample Portfolio[4].

iPath Industrial Metals (JJM)

Although it’s lightly traded, the iPath Industrial Metals (JJM[5]) 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[6]), 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. 

Endnotes:
  1. GLD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GLD
  2. SLV: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLV
  3. USLV: http://studio-5.financialcontent.com/investplace/quote?Symbol=USLV
  4. Edge Letter Sample Portfolio: https://www.edgeletter.com/sample.php
  5. JJM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JJM
  6. JJC: http://studio-5.financialcontent.com/investplace/quote?Symbol=JJC

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