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