Due to the ongoing bull market in precious metals, gold and silver related ETFs remain top performers. After breaking out of a long consolidation pattern in September the precious metals have been on a winning streak. Investment demand for both precious metals remains strong amid quantitative easing and easy money policies by central banks worldwide.
According to Jim Rodgers and other long time commodity traders these cycles tend to be about 18 years long, so another 8-10 years of rising prices is possible. Gold and Silver ETF products have come to market with great success riding this wave of investment euphoria. In addition, leveraged Gold and Silver ETFs continue to rise in popularity illustrating that the average investor has strong convictions about rising prices. Not since the last commodity boom in the 70’s have we seen this type of excitement or interest in the commodities.
Isn’t it crazy that we keep having these various bubbles over time that cause early investors to get rich and the ones late to the party to suffer staggering losses? I’m fascinated to see that once again gold and silver are making their way back into the hands of individual investors just as they did 3 decades ago. This time around instead of Gold Maple Leafs or Silver Bars most investors will own their precious metals on paper in the form of ETFs.
The bull market in both gold and silver has been quite orderly up to this point but you can tell that something is brewing if you watch these markets. Pundits often cite growing budget deficits and ever increasing money supplies as the factors that will lead to a super spike in the precious metals before things are all done. When the morning paper is talking about soaring Gold and Silver prices and your neighbor is bragging about his Mining ETF gains it will be time to exit. With all the bull and bear products now available there is no doubt that many investors will be trying to position themselves properly in the months ahead. All I know for sure is that human nature never changes and neither do commodity cycles, let the buyer beware.
Source by Michael R Peterson
Gold and Silver ETFs Continue To Shine In Bull Market
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