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Think Gold and Silver are Due for a Bounce? Then Buy These 4 ETFs -Breaking

by Mike Robinson

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© Reuters. You think Gold and Silver need a bounce? Get these ETFs

Gold and silver prices declined this week as investors anticipated the Fed’s policy decision after the latest CPI inflation report. Prices rose slightly today and analysts predict that gold will rise to $1900 an ounce by 2022. Inflation could also make precious metals less attractive than U.S. dollar holdings. The SPDR Gold, VanEck Vectors Gold Miners GDX (GDX), iShares Silver and Global X Silver Miners SIL ETFs may be a good bet. Keep reading. In the face of increasing prices for consumer goods, precious metals have been reliable investments since long. However, gold and silver prices have declined this week as the investors anticipated the Fed’s policy decision in response to the latest inflation report. Although prices were heading towards a fourth consecutive decline, they rose 0.1% at $1,776.23 an ounce. Spot silver prices increased 0.2% to $21.97 per ounce December 10.

Analysts at the investment banking firm Société Générale S.A (SCGLY (OTC:)) expect gold prices to trade at around $1,900 per ounce by the second quarter of 2022 because they do not anticipate interest rate hikes before then despite the Fed’s hawkish stance. Additionally, inflation is at an all-time high, rising 6.8% annually year-over-year in November. This could mean that precious metals are a more valuable store of value than the dollar.

As a hedge against inflation, it might be prudent to consider investing in SPDR Gold Shares and VanEck Vectors Gold Miners ETFs (NYSE;), iShares Silver Trust and Global X Silver Miners ETFs (SIL).

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