Why Gold And Silver Are Looking Good, According To One Commodity Trader
Raghee Horner is a foreign exchange and commodity trader and author of various step-by-step books on trading. On Monday she was a guest on Benzinga's PreMarket Prep to discuss her view on gold and silver.
According to Horner, gold could benefit investors in the negative interest environment seen across some regions of Europe and Japan where investors are actually paying to store their cash. As such, gold could become a "currency/savings account."
"Where could I get a little bit of yield and not have to pay to park my money?" she asked. "I think gold is going to benefit from this negative interest rate environment policy for some time to come."
Horner added that if the European Central Bank announces it will dig deeper into negative yield territory then any pullback in gold would be viewed as being an attractive entry point for investors.
Silver Also Looking Good
Horner continued that silver is "also looking so good" as it shares similar characteristics with both gold and copper. Right now the commodity is "more sympathetic with gold"
Horner added that the recent trend in the price of silver has been "too good to not to try to take a piece of" but she did acknowledge that it is more comfortable to hold gold because the narrative is "so clear" as opposed to silver's narrative which is "on the fence."
Listen to the full interview with Raghee at 17:53 in the clip below. PreMarket Prep is a daily trading ideas show that airs every morning live from 8-9 ET here. You can also listen to the podcast here.
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