Metals Minute 21: Precious Metals Buying Opportunity
Some of you might remember the phrase “Attention K-mart Shoppers” and the “Blue Light Special,” whereby the retailer would highlight an incredible bargain that would only last for a few minutes for those paying attention.
Today there appears to be a “Blue Light Special” available for Gold and Silver aficionados that undoubtedly won’t last long.
Higher yields (on negative-yielding debt) have temporarily strengthened the Dollar, bringing Gold down 3% for the week to $1695, while Silver was knocked down 5% to $24.20. Platinum and Palladium were both flat at $1191 and $2668.
For the 1-yr period, Gold is up 7%, Silver is up 73%, Platinum is up 65%, and Palladium is up 13%.
While there is still a premium between spot and physical prices, it appears to be an excellent opportunity to create or add to a position in physical metals today and the rest of this week.
All assets can be knocked down from time to time, and the pain has been more temporary recently for precious metals than other financial assets. With incredible worldwide demand for physical metal, there are opportunities to hedge yourself from the risks growing in other sectors.