Why Are The Precious Metals Rallying?
The precious metals have been on fire the last four months and The Wall Street Journal took notice this morning in an article on the front of their “Business & Finance” section. The most popular gold and silver miners ETFs – GDX and SIL – are up about 50% over that span! But why? As a long time precious metals bull I’m not complaining but it’s been confusing given how hawkish the Fed has been and how hard inflation is rolling over.
Nevertheless I think the precious metals could continue steadily higher if the market is right that the Fed is on the verge of a pivot. While I recently cut my precious metals mining ETF positions in half from 30% to 15%, I’m holding onto that position in the event this scenario plays out – which I consider likely.