Currently, the gold & other metals are pulling back. Copper is especially down probably due to its industrial uses and people are concerned about this recovery for the longer term. In the short to midterm, the US recovery seems to be in place, and currently the only "reasonably" safe place to invest right now.

However, there are some "chinks in the armor" and some of these reports coming out over the next few days and weeks will give us more pertinent clues as to how real this recovery is, or whether we are going into a double dip recession. Much of the data is starting to point to the latter, especially in certain sectors.

I have included a chart of the SPDR Trust Metals & Mining ETF, which is an ETF that invest strictly in mining companies. As you can see, just a few days ago it hit the top end of its range and is pulling back fairly significantly. If this continues for a few days, we may find a good entry point. Technical analysis helps to find a good entry (or exit) point once you find a stock or sector you want to own. This is a diversified way to be in the commodity sector in addition to owning the metals directly.


I am still bullish in the mid and long term on metals, especially if the governments around the world keep printing. Now I am looking for more good entry points. I did this exact same analysis to find my entry point on GLD (Gold) a few months ago. I am looking for more commodity exposure & less exposure to bonds over the next 6 months or so, as interest rates are very likely to rise.

Keep studying,
Dan Stewart CFA®