New Trade for August 12th 2020

Futures are green this morning after yesterday’s tech-led pullback.  Yesterday the S&P 500 broke a seven day winning streak just as it nearly reached its Feb. 19 record.  

Precious metals and cryptocurrencies took a hit yesterday.  Spot gold prices plunged to $1,876.32 before eeking back up slightly.  It’s currently trading at $1,940.00.  That’s a far cry from Friday’s intraday high of $2089.20.  Last week marked the first time gold price had climbed above the $2,000.00 level.

Cryptos have also caught a huge bid over the past few weeks with Bitcoin surging past the $10,000.00 mark in late July to the high $11,000.00’s.  Yesterday, BTC shrank back to $11,211.90 and is currently trading near $11,500.00.  

Positive vaccine news from Russia may have taken some of the air out of the inflation fears fueled rally for gold and bitcoin, but will it stick?  The aggressive approach of central bankers around the world to quell the impact of COVID-19 and mounting government debt may result in unprecedented inflation for years down the road.  The weakening U.S. dollar could also add fuel to the inflationary fire.  Against the euro, greenbacks have shed more than 4% over the last month.  It could be years before the inflation boil fully comes to a head, and there is still a lot of uncertainty as to how bad it could actually get.  

Gold and Bitcoin are probably the most popular ways for investors to bet against the dollar.  And the current pullback may offer a nice entry point.  But don’t overlook other important ways that you can protect your portfolio against inflation.

Silver may be your best bet right now if you’re looking for a way to bet against the dollar. Over the past few days spot silver price has fallen from above $29.00 to below $24.00.  It’s currently trading at around $26Silver price has more than doubled since hitting it’s low back in April. 

When it comes to precious metals, nothing compares to owning the actual physical form.  Right now may be a great time to begin collecting silver and other precious metals.  

If you want exposure to silver but don’t want to concern yourself with the care and storage of coins and bars other options include:

  • Silver ETF’s 
    • iShares Silver Trust (SLV)
    • Sprott Physical Silver Trust (PSLV)
  • Miners with silver production
    • Pan American Silver Corp. (PAAS)
    • Fresnillo (FNLPF)
    • MAG Silver Corp.  (MAG)


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