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CNBC Stock Blog
This post is the first of a weekly series written by ETF Trends editor Tom Lydon.
What do silver, gold and platinum have in common (besides the obvious)?
The answer: they’re all experiencing a renaissance, thanks to a growing flight to quality by nervous investors. While gold is the obvious choice for safe-haven investing, silver and platinum are showing signs of worthiness, too.
Investment Ideas - ETFs:
- SPDR Gold Shares [GLD
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] is up 15.4% in the last month
Gold is the go-to investment for safe-haven buying — it’s where nervous investors seem to turn first, and it’s responsible for the metal’s record price above $1,000 in March 2007.
Blame the economy for the continuing rush: we’re seeing no end of gloomy news that’s putting a smile on gold investors’ faces. So many investors are fleeing to gold, in fact, that holdings in GLD surpassed 1,000 tons for the first time ever, says the latest data.
Gold demand has been at historic highs of more than $100 billion since 2008 on industrial, investment and jewelry demand.
- iShares Silver Shares [SLV
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] is up 25.9% in the last month
Silver has enjoyed a renaissance of late, as the price has rallied in the last four weeks. It has rallied up 25.9% in the last month alone, a sign that nervous investors are still looking for tangible investments.
Although the price of silver is rising four times faster than the price of gold, an ounce of silver costs $14, a lower absolute price than it was 30 years ago.
Some analysts feel that silver, the “poor man’s gold,” is a good complement to gold exposure, as well. Gold is rapidly becoming more expensive again; a signal to investors that silver could be poised for an even bigger price bump
- E-TRACS UBS Long Platinum [PTM
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] is up 14.4% in the last month
Platinum is at its highest price level since September, even though industrial demand is still weak. Analysts say gains are a spillover from gold buying and on hopes that the auto industry will rebound. If the auto industry is saved and sales pick up, platinum could see a serious rally because of its use in catalytic converters.
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Tom Lydon is the editor of ETF Trends and author of iMoney: Profitable ETF Strategies for Every Investor.








