Gold and Silver Mining ETFs Allocation Increased

By on March 3, 2021

Mining ETFsGold and silver mining stocks, along with precious metals prices, have been trending lower since August. This is likely due to competition from rising interest rates and the growing popularity of Bitcoin.

Given the weakness, I decided to increase the position in the iShares MSCI Global Gold Miners ETF (RING) by approximately 6%, along with increasing the position in the iShares MSCI Global Silver Miners ETF (SLVP) by approximately 10%. RING was purchased at $26.00, while SLVP was purchased at $15.28.

Increased money printing by the Fed and fiscal spending by the government may lead to higher inflation reversing the declining trend in precious metals. This is far from assured as the markets remain unpredictable.

Disclaimer: It is very challenging to outperform a buy and hold strategy. Historically, investors have found themselves well-served over the long-term by investing regularly in a diversified portfolio of stocks or low cost, broadly diversified indexed stock funds. Profitable trades are not guaranteed. No system or methodology ensures stock market profits. All investors are advised to conduct their own independent research into individual stocks, closed-end funds, mutual funds, and exchange traded funds or any other investment vehicle before making a purchase decision. In addition, investors are advised that past performance has demonstrated no relation to future performance. Although accuracy is strived for, no guarantee is made regarding the accuracy of data presented.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>