Investors are always looking for the next big thing. When they find it, the opportunity can pay out fast or it can take a couple of years to develop. The trades that work out over the longer-term are usually referred to as a “market trend.”
You might be shocked to find out that you missed one of the biggest hidden trends over the last year. I’m not talking about Apple, Tesla, or even Bitcoin. While those are all very well-known outperformers, what I’m bringing you today was a big secret up until recently. This hidden treasure resides in the commodity asset class, in a segment that you might not have known existed.
While most have invested in commodities via gold or oil ETFs, it’s likely they were not involved in this hot trade.
What am I talking about?
Let’s talk numbers
When everyone else panicked, investors that bought silver over the last few months were rewarded. In the middle of March, when the virus fears were at their highest, silver was trading at $11.64 an ounce. As of last week, silver was trading at $27, that’s a gain of 138% in just under six months.
The silver move started after markets rallied and global central banks began easing money policies. Gold and silver have been great places to hide from potential fiat currency risk, but silver has seen the most extreme move for any metal this year.
How could an average investor have gotten in?
For big traders and investors, the silver futures contract was the way to get exposure. But for average retail investors, they don’t have access to the futures markets as they do to stocks and EFTs.
Luckily for those that saw the silver move coming, there were a handful of ways to get exposure:
SLV- The biggest silver ETF is the iShares Silver Trust. The ETF was trading under $11 at its lows and now trades around the $25 level.
AGQ- The ProShares Ultra Silver ETF gives investors leveraged exposure to daily silver moves. This instrument is designed to double the move of silver every day. AGQ bottomed under $13 earlier this year and now traded over $60, for a move of over 350%.
SIL- Another way to play was to buy the companies that pull silver out of the ground. This silver miner ETF pools the miner stocks into its product and has seen a move of over 200% since March.
Continued . . .
Notice to Zacks Members
Investors make big money on commodities – why not you? When the time was right, George Soros won a billion dollar bet against the British pound. John Arnold raked in billions on natural gas. Louis Bacon cashed in big on oil by predicting the Gulf War.
Today you don’t have to be a billionaire speculator in futures or options to catch timely, skyrocketing moves.
This Zacks investment strategy uses only easy-to-trade stocks and ETFs to target essential products like gold, gas, grains, currencies, energy, coffee, and more. Though the battle with the coronavirus rages on, enormous pent-up consumer demand will soon be unleashed. Then add a wave of momentum from new trade deals to the mix. We expect short-term jumps of +20% to +40% and long-term booms reaching +100%, +200%, and beyond.
See Our Latest Buys Now >>
The gold and silver story still has legs!
Most of the fun to be had in metals has passed. The trade now seems exhausted. However, there might be some more meat on the bone as traders scramble to cover short positions, forcing a short squeeze even higher. Additionally, if more stimulus comes from governments and central banks to assist with the COVID lockdowns, we could see more buying interest.
While you might have missed the big move, make sure you don’t miss the next commodity opportunity.
What’s the next big trend?
Recently, commodity markets have started to grind higher as economies begin to reopen. Demand is finally coming back, which is excellent for prices. Additionally, the stocks that are associated with commodities are beginning to see some strength.
I see a similar move to silver forming for another commodity, one that could be a top performer as we close out the year. This story is more of a supply/demand issue in a commodity that has severely underperformed for the last two years
If we get a vaccine and the economic environment normalizes, I expect bullish trends in commodities to accelerate even more. We have already seen the strength in certain commodity markets as China came back online.
The segment I have identified is still on sale right now! And when the trend resumes, we could see the same kind of results in 2021 that silver showed investors this year.
Don't miss the next one
To make sure you are informed of lucrative commodity developments, you're invited to take part in the new portfolio service I'm directing, Zacks Commodity Innovators.
This coming Monday, I will identify my #1 trend and exactly how to play it. This will allow investors to enter a market with substantial growth potential that most aren't even aware of.
No need to get involved with futures contracts or complicated option moves. Commodity Innovators will only recommend easy-to-trade stocks and ETFs.
In fact, Monday morning I plan to post one ETF and one stock that will give us a head start over other investors in the hottest, yet still little-known commodity trend of 2020-21.
In this, our newest portfolio, we will continue to capitalize both on breaking news and on developing long-term trends. We will minimize our risk without being exposed to the futures market, while keeping the same potential rewards. With the Zacks Rank working for us, there will be a plethora of strong ETFs and stocks to choose from that will allow us to capture profit potential.
We aim for short-term jumps of +20-40% and also ride trends that could carry us for months and years to gains of +100% and more.
Important: Please note that the number of investors who view these moves will be restricted and the deadline to gain access is coming up fast. The portfolio closes to entry Sunday, August 16th.
Make sure you don't miss the opportunity to ride the hottest commodity trend of 2020-21.
Be sure to look into Zacks Commodity Innovators right now >>
Jeremy Mullin is a technical expert with 15 years’ experience pinpointing the best times to buy and sell commodities. He is the editor of Zacks’ new portfolio, Commodity Innovators.
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