Gold/Silver: Our other top commodity picks
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Finally, November is here, and the initial setup for the first week will be challenging, especially for the Gold market. We expect the Federal Reserve to acknowledge the effectiveness of the QE program since the pandemic started, and with Covid cases declining, there will now be a need to taper. They will reduce asset purchases by $15 billion each month, effectively taking it to zero by June, when their focus shifts to interest rate hikes. Additionally, Friday, we will have the latest jobs reading, and with two straight months of disappointing figures, we could be setting ourselves up for a blowout number.
I must reiterate that it is essential to have a "real assets" portfolio beyond Gold and Silver due to the type of inflation that we will continue to see. We will be targeting Copper, Platinum, Crude Oil, Wheat, Cotton, and Coffee. For many of these commodities, I have discussed the bullish nature of the fundamental backdrop in previous articles written. If you have never traded futures or commodities, I just completed a new educational guide that answers all your questions on how to transfer your current investing skills into trading "real assets," such as the 10 oz Gold futures contract. You can request yours here: Trade Metals, Transition your Experience Book.
Weekly Platinum Chart
For those committed to metals, I would focus on far-dated Platinum futures as the price trends lower. The current chip shortage has forced auto manufacturers to cut production temporarily; however, once they resolve the bottlenecks, we should see auto manufacturers replenish their stockpiles. Ideally, a strategy we would implement for accounts 50K and up would be to buy 50 ounces of Platinum at $1015/oz and any decline below $995/oz and hold for a potential rise to $1250 by year-end 2022. If you would like to learn more about technical analysis, we have updated the guide to provide you with all the steps to create an actionable plan used as a foundation for entering and exiting the market. You can request yours here: 5-Step Technical Analysis Guide to Precious Metals.