RSSThree Metals to Watch With ETFs - Not One of Them Gold
By Tom Lydon | December 10, 2009 | 11:09 AM | 0 Comments
All the fuss over gold has got to be making the other metals feel like a gaggle of red-headed stepchildren. Gold had been hitting record prices for the last few weeks before taking a breather for the last week or so, but other metals have been performing just as well, if not better. If you're feeling a little gold-ed out, why not consider one of these other metals?
Platinum. Platinum’s price premium over gold has recently been shrinking, but platinum should continue to prevail, because it’s one of the rarest precious metals. Platinum prices have climbed more than 36% from their low in early July to trade at highs above $1,500 an ounce, levels not seen in 15 months. A possible drop off in industrial demand is the major hurdle that platinum is facing, as growth in Chinese jewelry demand may not be enough to make up for the sluggish market. Any rebound in the auto industry, however, could pick up the slack.
Copper. 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 in October, up from 42% the same time last year. Look to China to drive this market: China is expected to account for 38% of the world’s copper demand by 2014, up from 28% in 2008.
- iPath DJ AIG Copper TR Sub-Idx ETN (NYSEArca: JJC)
Silver. Silver prices, as gauged by the global benchmark London fixing, have soared nearly 70% this year, compared with a 30% gain in gold prices. Despite the run-up, silver prices are actually 12% lower than a year ago. Nevertheless, investment demand is forecast to continue to prop up metal prices while industrial and jewelry silver consumption may remain weak this year.
- ETFS Physical Silver Shares (NYSEArca: SIVR)
- PowerShares DB Silver (NYSEArca: DBS)
- iShares Silver Trust (NYSEArca: SLV)
** Editor's Note: Read Brad Zigler's great piece today on gold: Should Gold Bulls be Worried?
| 
|
