Published on TheStreet.com 02/14/10 - 09:12 PM EST
By Mohammed Isah of fxtechstrategy.com
"Gold futures took a break this past week from their recent declines and broke back into their longer rising trend line and through the Jan. 28 low at 1,073.95 to close the week higher at 1,093.30. Gold futures still retain their broader downside bias, but the immediate risk is higher, and futures could target the Feb. 3 high at 1,125.00. A cap is expected there, which would turn the commodity back down again. However, if that level breaks, we could see more momentum build toward the Jan. 20 high at 1,141.48. "
To read the entire article go here.
Sunday, February 14, 2010
Thursday, February 4, 2010
The Glitter of Precious-Metals ETFs - Kiplinger.com
By Laura Cohn, Associate Editor, Kiplinger's Personal Finance
Published February 4, 2010
In this article Ms. Cohn identifies five exchange-traded funds that give investors a stake in gold, silver, platinum and palladium. Ms. Cohn reports “for decades, precious metal maniacs have argued the bullish case for their favorite metal. In recent years, they’ve actually been right. The price of gold has climbed steadily for the past nine years, from $277 an ounce in 2001 to a record high (not adjusted for inflation) of $1,213 in December 2009 as investors piled into the yellow metal because of its reputation as a safe haven and as a hedge against a falling dollar”. Recently Gold closed at $1,115 on February 2, 2010.
She further elaborates “the rising price and the rise of exchange-traded funds have attracted investors in droves. Thanks to ETFs, investors can buy gold without having to open their own Fort Knox. Last year, investors around the world bought 51.2 million ounces of gold, and 35% of that amount came through ETFs. In the case of silver, the figure is even more astounding. Investors snatched up 172 million ounces of silver last year, and 87% of it was via ETFs. Silver closed February 2, 2010 at $17 an ounce, well below the record of $50, set in 1980, but far above the $5 level of recent years. However, you may want to expand your horizons to commodities that are less well known. In particular, the arrival of two new ETFs makes it easier than ever to invest in platinum and palladium, two precious metals with a wider array of industrial uses than gold and silver. The creative names of these new vehicles are ETFS Physical Platinum Shares (symbol PPLT) and ETFS Physical Palladium Shares (PALL).”
Then she shares a bit of wisdom that if you do not know already you should. Don’t put all of your eggs in the same basket, or as the author more eloquently states “Investing in raw materials doesn’t come without risk -- and, in fact, prices of platinum and palladium are actually more volatile than those of gold. So this is one reason precious metals should represent only a small slice of your portfolio -- 5% at most and probably less for most people. The best way to get a piece of gold is through the popular and liquid SPDR Gold Shares (GLD). The ETF sports an expense ratio of 0.40%. (If you’d rather track gold stocks, you can buy another ETF, Van Eck Market Vectors Gold Miners ETF (GDX), which tracks an index of gold-mining stocks). For access to silver, buy the iShares Silver Trust (SLV), which charges 0.50% per year. Both GLD and SLV provide a stake in the metals, which are housed in vaults located in London, eliminating the need to worry about where to store them safely.” “What gets people into trouble is making a bet that’s too concentrated,” says Jack Reutemann, founder of Research Financial Strategies, so he recommends a buying bit of each. The author states an alternative “spread your risk by buying an ETF that includes gold and silver as well as other materials, such as oil, corn and soybeans. For broad exposure, we like the PowerShares DB Commodity Index Tracking Fund (DBC). The ETF, based on the Deutsche Bank Liquid Commodity Index, tracks the futures prices of 14 raw materials. Its expense ratio is 0.85%.”
Read the whole article here:
The Glitter of Precious-Metals ETFs - Kiplinger.com
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Published February 4, 2010
In this article Ms. Cohn identifies five exchange-traded funds that give investors a stake in gold, silver, platinum and palladium. Ms. Cohn reports “for decades, precious metal maniacs have argued the bullish case for their favorite metal. In recent years, they’ve actually been right. The price of gold has climbed steadily for the past nine years, from $277 an ounce in 2001 to a record high (not adjusted for inflation) of $1,213 in December 2009 as investors piled into the yellow metal because of its reputation as a safe haven and as a hedge against a falling dollar”. Recently Gold closed at $1,115 on February 2, 2010.
She further elaborates “the rising price and the rise of exchange-traded funds have attracted investors in droves. Thanks to ETFs, investors can buy gold without having to open their own Fort Knox. Last year, investors around the world bought 51.2 million ounces of gold, and 35% of that amount came through ETFs. In the case of silver, the figure is even more astounding. Investors snatched up 172 million ounces of silver last year, and 87% of it was via ETFs. Silver closed February 2, 2010 at $17 an ounce, well below the record of $50, set in 1980, but far above the $5 level of recent years. However, you may want to expand your horizons to commodities that are less well known. In particular, the arrival of two new ETFs makes it easier than ever to invest in platinum and palladium, two precious metals with a wider array of industrial uses than gold and silver. The creative names of these new vehicles are ETFS Physical Platinum Shares (symbol PPLT) and ETFS Physical Palladium Shares (PALL).”
Then she shares a bit of wisdom that if you do not know already you should. Don’t put all of your eggs in the same basket, or as the author more eloquently states “Investing in raw materials doesn’t come without risk -- and, in fact, prices of platinum and palladium are actually more volatile than those of gold. So this is one reason precious metals should represent only a small slice of your portfolio -- 5% at most and probably less for most people. The best way to get a piece of gold is through the popular and liquid SPDR Gold Shares (GLD). The ETF sports an expense ratio of 0.40%. (If you’d rather track gold stocks, you can buy another ETF, Van Eck Market Vectors Gold Miners ETF (GDX), which tracks an index of gold-mining stocks). For access to silver, buy the iShares Silver Trust (SLV), which charges 0.50% per year. Both GLD and SLV provide a stake in the metals, which are housed in vaults located in London, eliminating the need to worry about where to store them safely.” “What gets people into trouble is making a bet that’s too concentrated,” says Jack Reutemann, founder of Research Financial Strategies, so he recommends a buying bit of each. The author states an alternative “spread your risk by buying an ETF that includes gold and silver as well as other materials, such as oil, corn and soybeans. For broad exposure, we like the PowerShares DB Commodity Index Tracking Fund (DBC). The ETF, based on the Deutsche Bank Liquid Commodity Index, tracks the futures prices of 14 raw materials. Its expense ratio is 0.85%.”
Read the whole article here:
The Glitter of Precious-Metals ETFs - Kiplinger.com
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