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.