Other Precious Metals ETFs to Watch as Gold Continues to Rise

Gold prices have only continued to gain as investors look to hedge possible inflation and a weak dollar. The run has had a nice side effect, too: it’s boosted the prices of other metals and given their related ETFs a lift.

The reasons for gold’s climb to record prices haven’t changed: a weaker dollar, inflation worries and mixed investor sentiment seem to rule the markets lately. But as gold marches forward, other metals have hitched a ride on its coattails. Platinum and palladium have hit 12-month highs, and analysts think it could continue if gold remains strong.

Devon Maylie for The Wall Street Journal reports that platinum and palladium are both industrial and precious metals. As a result, they’re benefiting from hedging as well as hopes that industrial activity will take off in 2010. Silver, another precious metal with industrial applications, has also been gaining strength, handily outperforming gold year-to-date.

Copper prices have also rallied to a 13-month high on a sliding dollar and Japan’s economic expansion. Copper made up 54% of the total value of Chile’s exports last month, up from 42% the same time last year, reports Drew Benson for Bloomberg.

Spot gold hit a record high of $1,134.55 a troy ounce Monday, building on the gains it has posted over the past weeks.

If you don’t want gold, where can you look? Among the growing number of options include:

• iShares Silver Trust (NYSEArca: SLV): up 53.1% year-to-date

• E-TRACS UBS Long Platinum ETN (NYSEArca: PTM): up 47.6% year-to-date

http://online.wsj.com/article/SB10001424052748704431804574539160726487446.html

• ETFS Physical Silver Shares (NYSEArca: SIVR): up 15.9% in the last three months

• iPath DJ AIG Copper TR Sub-Index ETN (NYSEArca: JJC): up 109.3% year-to-date

Comments

[test213:]

Gold has had an amazing run. It will continue to dowell as long as the dollar moves lower. But when US economic strength becomes more evident, the dollar should rise and that should cap gold's upside as well.

test213
admin: invetrics.com

Nov 16 09:16 PM

[Gedankonomist:]

If you think about it, precious metals have not really increased their worth that much.

Look at a 1964 quarter. This quarter is made of 90% silver so its "junk" value is a little over $3 in FED notes. (See the website coinflation.com.)

In 1964, that quarter could buy you a gallon of gas. Today, it can still buy you a gallon of gas.

So it's not that silver, gold, etc. has gone up, but it is the FED dollar that has gone down. This is what the Keynesians don't want you to know.

That way, they get rich while you remain poor and ignorant. So they use their lapdogs in the media to teach you that you are a "kook" if you think that gold, silver, etc. is a good investment. That in part, drives the price down. Which is fine with me, because it creates a longer buying opportunity; they cannot keep it up for ever. So eventually the price will go to where it should be.

The only risk is that when it finally fails, the scheme will "snap;" i.e. there might be hyperinflation. Then perhaps they might try to pull the same stunt that FDR did in 1933. So hide your stuff.

Nov 17 10:15 AM