September Effect: Right On Cue With Metal ETF’s (GLD, SIVR, GDX, SLV)

september“We hope you took our recent advice to lighten up on equities and increase your allocation to metals. Two weeks ago, we wrote, “September might be one of the worst months for stocks, but historically it is a very strong month for gold. Use the “September Effect” to your advantage. Lighten up on stocks and be sure your wealth is protected with the Midas metal,”  Bob Irish Reports From HoweStreet.

“Right on cue, stocks fell sharply on big volume as September arrived. And gold had its first major breakout in months. Gold stocks blasted higher this week, with the gold miners ETF up 13% in three days. Silver is on the run too. The chart below shows that the silver ETF just broke above a one and a half year downtrend,”  Irish Reports.
 

But the precious metals are responding to much more than a seasonal trend. There are powerful fundamentals at work too. And one point of extreme strength is the growing demand in China.

Here is a look at the profiles for some metal ETF’s below:

The investment (GLD) seeks to strive to reflect the performance of the price of gold bullion, less the Trust’s expenses. The Trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets. The gold held by the trust will only be sold on an as-needed basis to pay trust expenses, in the event the Trust terminates and liquidates its assets, or as otherwise required by law or regulation. The Trust is not managed like an active investment vehicle, and it’s not registered as an investment company under the Investment Company Act of 1940.

The objective of the investment (SLV) is to reflect the price of silver owned by the trust less the trust’s expenses and liabilities. The fund is intended to constitute a simple and cost-effective means of making an investment similar to an investment in silver. Although the fund is not the exact equivalent of an investment in silver, they provide investors with an alternative that allows a level of participation in the silver market through the securities market.

The objective of (SIVR) ETFS Silver Trust’s shares is to reflect the performance of the price of silver bullion, less the Trust’s operating expenses. The Trust is open ended and is designed for investors who want a cost-effective and convenient way to invest in Silver as well as diversify their silver holdings. ETFS Silver Trust is backed by physical silver bullion held by HSBC in London, one of the world’s leading Custodians for precious metals. The Shares represent an interest in physical silver bullion owned by the Trust. The physical silver bullion of the trust is subject to minimal counterparty or credit risks, which contrasts with other offerings that achieve bullion exposure through the use of derivatives.

The investment (GDX) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the AMEX Gold Miners index. The fund generally normally invests at least 80% of its total assets in common stocks and American depositary receipts (ADRs) of companies involved in the gold mining industry. The fund is nondiversified.

 

TOP 10 HOLDINGS (GDX) ( 62.28% OF TOTAL ASSETS)  
 
Company Symbol % Assets
AGNICO EAGLE MINES (AEM) 4.58
ANGLOGOLD ASHANTI LT (AU) 4.93
BARRICK GOLD CP (ABX) 10.93
Buenaventura Mining Company Inc. ADR N/A 4.93
GOLDCORP INC COM NPV (GG) 9.61
IAMGOLD CORP COM NPV (IAG) 4.84
Kinross Gold Corporation N/A 4.61
NEWMONT MIN CP (HLDG (NEM) 7.86
Randgold Resources Limited (GOLD) 5.27
YAMANA GOLD INC COM NPV (AUY) 4.72

GET A FREE TREND ANALYSIS  FOR ANY ETF HERE!


 

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