ETFS Physical Silver

The Sprott Physical ETF (PSLV) and the iShares Silver Trust (SLV) are among the popular ETFs to get exposure to silver. Which is a better stock to buy?

First Majestic, New Gold, Agnico, and Silver Wheaton now have RSI scores of 60.5, 56.2, 57.6, 59.6, respectively.

It’s expected that precious metal mining stocks will follow precious metals. So it’s crucial to know which stocks are closely associated with precious metals.

To be sure, it’s not unreasonable that gold and silver (along with platinum) are often lumped together in the precious metal basket.

In addition to the potential headwind from higher real rates, it’s also not clear that either metal is that mispriced. Valuing commodities is notoriously difficult, as there are no cash flows.

The rally had pushed silver ETFs such as the iShares Silver Trust ETF (SLV), the ProShares Ultra Silver (AGQ), and the Silver Trust ETF (SIVR) higher.

Over the past three years, PAAS, AUY, and GOLD have seen declining correlations with gold, while FNV saw a mixed correlation to gold.

The correlation between gold and the dollar since the beginning of 2018 is -0.85.

In this part of our series, we’ll look at the correlation between gold and four mining stocks.

In this part of our series, we’ll look at the correlation between gold and four mining stocks: Franco-Nevada (FNV), Coeur Mining (CDE), Kinross Gold (KGC), and Eldorado Gold (EGO).

The precious metals and miners were widely expected to react negatively after the Fed decided to hike interest rates.

In this part of the series, we’ll look at the correlation between gold and four select mining stocks.

Mining stocks tend to move in accordance with gold prices.

Mining stocks’ correlation with gold is crucial, as gold is famously known as the big brother of precious metals.

Miners had a good start to 2018. They saw higher prices due to precious metals’ revival. As precious metals fell, so did the mining stocks.

In this part of the series, we’ll analyze the correlations of the movements of a group of mining stocks with gold.

Most mining stocks have risen during the past month due to the revival in precious metals prices.

First Majestic Silver saw correlation drop during the past three years. On a three-year basis, its correlation with gold was 0.57.

Gold is a non-yield bearing asset that reacts negatively to rises in the interest rate.

New Gold, Agnico-Eagle Mines, Franco-Nevada, and Cia de Minas Buenaventura have call-implied volatilities of 45.2%, 24.4%, 21.7%, and 31.2%, respectively.

Among these spreads, the gold-silver spread is the most talked about because it measures the number of silver ounces it takes to buy a single ounce of gold.

Agnico, Randgold, Yamana, and Barrick have call implied volatilities of 24.3%, 21.1%, 38.8%, and 22.8%, respectively.

Gold and the US dollar are mostly inversely related to each other.

On a year-to-date basis, AngloGold has seen the highest correlation to gold, while Cia De Minas has the lowest year-to-date correlation.

Mining stock analysis In this part of the series, we’ll take a look at First Majestic Silver’s (AG), B2Gold’s (BTG), Goldcorp’s (GG), and New Gold’s (NGD) call-implied volatility and RSI (relative strength index) scores. Volatility analysis AG, BTG, GG, and NGD have call-implied volatility of 42.9%, 54.8%, 25.7%, and 52.4%, respectively. New Gold and Goldcorp have reported trailing-30-day […]

Gold Fields, Wheaton Precious Metals, Pan American Silver, and IamGold have RSI scores of 36.7, 55.2, 41.9, and 44.4, respectively.

Often, gold, silver, platinum, and palladium react to the overall risk in the market.

Precious metals have been closely associated with the movement of the US dollar over the last few months.

Correlation analysis Mining stocks’ performance usually depends on precious metal prices. Correlation analysis can give investors some perspective on how mining stocks relate to precious metals, especially gold. In this part of our series, we’ll look at four miners—Royal Gold (RGLD), Goldcorp (GG), Franco-Nevada (FNV), and Randgold Resources (GOLD)—and their correlation with gold. On Monday, the ETFS Physical […]

When you look at mining stocks’ performance, it’s important to analyze their correlation with gold. These stocks typically take their directional cues from gold, which is the most dominant among precious metals.

Geopolitical events like the tensions with North Korea helped drive the price of gold higher in September 2017.

As of October 24, 2017, Silver Wheaton (SLW), Yamana Gold (AUY), Barrick Gold (ABX), and AngloGold Ashanti (AU) had implied volatility readings of 30.8%, 48.4%, 29.1%, and 40.9%, respectively.

The gold-platinum spread was ~1.38 on October 23. The RSI (relative strength index) level for the gold-platinum spread is now at 93.9.

Gold fell for the third consecutive day on October 18, 2017, as the US dollar regained strength. However, October 19 was an up day for gold and silver.

The Physical Silver Shares (SIVR) and Physical Swiss Gold Shares (SGOL) witnessed rises on Friday, October 16, climbing 0.98% and 0.81%, respectively.

Among the miners that we’re looking at in this part of the series, Sibanye Gold has the lowest correlation to gold on a YTD basis, while Gold Fields has the highest correlation to gold.

North Korean tensions Like the US dollar, global tensions can be responsible for precious metal price fluctuations. North Korea has interpreted US president Donald Trump’s comments as a declaration of war, stating that Pyongyang has the right to take countermeasures, including shooting down US bombers outside of its airspace. The ongoing unrest in the Korean peninsula has led to a global […]

Silver Wheaton has the highest correlation with gold, while Franco-Nevada has the lowest correlation.

Most of the miners have seen an upswing in their prices over the past week.

In this part of the series, we’ll look at some important technical indicators, including volatility figures and RSI levels for major miners.

Royal Gold’s correlation fell from a three-year correlation of ~0.75 and a year-to-date correlation of ~0.72 with gold.

July 20, 2017, was an up day for the euro, which put downward pressure on the US dollar as represented by the U.S. Dollar Index (or DXY).

Gold and silver-based funds such as SGOL and SIVR are impacted by changes in precious metal prices. They fell due to the fall in precious metals on Friday.

In this article, we’ll take a look at the variables that determine how attractive particular mining stocks or shares are or could become.

Silver has seen a five-day trailing loss of 2.6%, while gold and platinum fell 1.7% and 1.9%, respectively.

The gold-silver spread touched a peak of 85 in late 2008. The RSI level of the gold-silver ratio is 80.8, suggesting a possible pullback in the spread.

Though the precious metals survived the Fed’s interest rate hike, the miners took a hit. Most mining stocks saw a considerable down day on Wednesday.

On June 6, 2017, the US Dollar Index plunged to its lowest level in seven months, which helped dollar-denominated precious metals regain value.

Investors are constantly speculating about the impact on precious metals of a possible Fed rate hike in June. Let’s look at some 14-day RSI scores and implied volatility.

Over the past year, silver has been very volatile compared to the other three precious metals. Silver was the highest among precious metals in mid-April 2017.

The ETFS Physical Swiss Gold (SGOL) and the ETFS Physical Silver (SIVR) have risen 8.5% and 4.1%, respectively, on a year-to-date basis as of May 18, 2017.

Gold futures for June expiration fell 0.47% and ended May 18 at $1,252.8 per ounce. The call implied volatility in gold rose to 11.3%.

One of the critical elements that plays on precious metals besides the overall market sentiment is the US dollar.

When analyzing the performance of a metal, investors should look at its fundamentals. In this series, we’ll look at various metrics for silver and other precious metals.

The US Dollar Index, which prices the dollar against a basket of six major world currencies, has risen ~0.46% on a trailing-five-day basis.

Precious metals were doing considerably well until the first half of April 2017. As investors’ risk appetites revived, haven assets slumped.
Among these metals, silver has plummeted the most.

While the US dollar has seen a decline in 2017, the increased possibility of a Fed rate hike in June could give the currency some breathing room.

Metal investors have to study upward and downward trends as price change predictability can be affected by rises and falls in precious metal prices.

Geopolitical risks had been playing on haven bids for precious metals, but now, we may be seeing to be a temporary respite—however brief—from global worries.

Another important phenomenon that played on the fall of precious metals on Wednesday, April 19, was the upswing of the US dollar.

As global tumult grips markets and investors turn to mining stocks as safe havens, it’s crucial to understand which stocks are closely tied to precious metals.

Since the French elections are right around the corner, investors might start parking their money in safe-haven assets like gold.

Turbulence in markets due to the viability of the Trump Administration, the upcoming French elections, and the Brexit vote caused precious metals to rise.

When analyzing the precious metals market, it’s important to take a look at the relationship between gold (SGOL) and silver (SIVR).

Yamana’s correlation with gold has increased from a three-year correlation of ~0.74 to a one-year correlation of ~0.80.

We’ve begun to see a positive impact on mining shares, mining shares had been facing losses after Fed’s interest rate hike.

Amid the recent turbulence in markets, precious metals have begun to rise, but we’ve only seen the slightest positive impact on mining shares.

When analyzing the precious metals market, it’s important to take a look at the relationship between gold and silver.

Silver has performed slightly better than gold and platinum on a year-to-date basis.

Uncertainty in the market significantly affects the performances of precious metals. It also affects precious metals mining stocks, which are known to closely track precious metals.

The directional move of the interest rate is a crucial determinant of the direction precious metals will take.

The gold-silver spread was trading at 68.5 on February 23, 2017. The spread suggests that it took 68.5 ounces of silver to buy a single ounce of gold.

It’s important to understand which mining stocks have overperformed and underperformed precious metals.

Mining companies that have high correlations with gold include B2Gold (BTG), Royal Gold (RGLD), Agnico Eagle Mines (AEM), and Primero Mining (PPP).

Precious metal prices have risen due to uncertainty since Donald Trump won the US presidential election.

Precious metal mining stocks are known to closely track the performance of their respective precious metals.

The reason behind the fall of the dollar on Friday, January 27, 2017, was lower-than-expected GDP numbers. The DXY ended the day 0.10% higher.

The gold-silver spread has fallen drastically since the beginning of 2016. The most recent spread marked gold’s highest premium over silver since July 2016.

Precious metals surged at the start of 2016. By the end of 2016, however, the precious metal markets had become choppy.

The correlation between gold and the US Dollar Index is -0.36. It means that about 36.0% of the time, gold and the dollar move in opposite directions.

Silver is popular among investors who want to hedge against the overall risk in the market as well as those who want to link their gains to industrial performance.

Precious metals surged at the start of 2016. However, the past few months have been choppy, and precious metals have fallen drastically.

Gold was trading slightly lower on December 23, 2016, before the markets started off their Christmas holidays. Gold’s fall was the result of a retreat of the US dollar from its 14-year high.

Gold and silver have been strong for the past few days. However, silver has substantially outperformed gold year-to-date.

Fluctuations in the dollar are a major determinant of changes in the prices of precious metals. Gold and the US dollar mostly have an inverse relationship.

Precious metal–based funds such as the Physical Silver Shares ETF (SIVR) and the Physical Swiss Gold Shares ETF (SGOL) have seen their returns fall in the past few months.

Many of the fluctuations in precious metals have been determined by the Federal Reserve’s interest rate stance. These variations play on precious metals funds.

Lately, precious metal prices have been falling slowly. As a result, mining stocks have also fallen.

Call-implied volatility takes into account the changes in the price of an asset with respect to variations in the price of its call option.

Many of the fluctuations in precious metals have been determined by the Federal Reserve’s stance on the interest rate, and these fluctuations play on precious metals–based funds.

On a year-to-date basis, silver has been the best performing precious metal, while over the past five trading days, it has been tumbling sharply.

The US economic data that came out on Friday, August 5, 2016, brought down the precious metals significantly.

Gold and silver have a strong correlation close to 75%. This suggests that about 75% of the time, a fall in gold prices leads to a fall in silver prices.

Further to its outlook on gold, Citibank is analyzing potential rate hikes by the Federal Reserve over a period of time to get clues on gold’s direction.

The falling equity market took down the Japanese stock markets too.

Hedge funds increased their bets on gold as prices fell after gold’s gains in 1Q16. However, hedge funds and money managers curbed their bets on gold as it fell steadily in May.

In 2016, silver has outperformed its precious metal peers. Silver has risen about 19.6% on a year-to-date basis while gold has risen 18%.