Why Gold And Silver Prices Are Going Much Higher

New York (July 25)  The precious metals selloff is very likely coming to an end, nevertheless, Gold/SPDR Gold Shares (GLD) and Silver/iShares Silver Trust (SLV) have gotten slammed quite hard over the past five weeks. Prices have plunged by 7%, and 12% respectively since the Fed’s rate hike decision in mid-June.

However, despite the recent declines, gold and silver remain above key levels, the inflation picture continues to heat up, and record amounts of debt are towering all around us. Therefore, the recent selloff is overwhelmingly likely a transient phenomenon, mostly decoupled from any intermediate or long term fundamentals, and represents a very compelling buying opportunity at current levels.

Background Information About GLD/SLV ETFs

GLD is the largest, reportedly physically-backed gold exchange-traded fund in the world, with roughly $35 billion worth of net assets. GLD offers market participants an efficient way to access the gold market. The ETF is an attractive alternative to trading gold futures, as it can be traded much like a stock on the NYSE Arca exchange instead of dealing with alternative exchanges and trading requirements pertaining to futures contracts.

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