Commodities prices are on the rise today with Gold, Silver, and Platinum Futures gaining nicely on the session. This is occurring in the face of a rising U.S. Dollar as well, which, as most of you know, are usually correlated inversely.
Investors realize that commodities have the potential to win in a variety of ways: inflation can push prices higher, global crises often sends investors into hard assets, global fundamentals support high demand for usable commodities like copper, platinum, palladium, and silver, and the devaluation of currencies technically supports Dollar denominated assets as well.
I am bullish on Gold, Platinum, and Silver; I believe that a basket of these commodities gives investors the ability to reap rewards in a number of ways (see above) while smoothing out portfolio volatility.
•The U.S. Dollar Index, as measured by the PowerShares US Dollar Bull ETF (NYSE:
UUP), is currently up by 0.33% on the session.
•Gold futures, as measured by the SPDR Gold Trust (NYSE:
GLD), is higher by 2.58% today.
•Silver futures, as measured by the ISHARES Silver Trust (NYSE:
SLV), are markedly higher by 4.69% today.
•Platinum futures, as measured by the UBS Long Platinum ETN (NYSE:
PTM) are higher by 0.48%.
I recently suggested selling May puts in the SPDR Gold Trust and buying July and/or September call spreads. I am reiterating this strategy in the ETF. Similarly structures trades can also be executed in the SLV as well.
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