Balanced Portfolio Recommendation: Add 3.75% – Global X Physical Silver (ETPMAG)

*** GENERAL AVICE ONLY***

Trade Date: 19/06/2024

Description: ETPMAG is backed by physical silver. Each physical bar is segregated, individually identified and allocated.

Recommendation

Add 3.75% allocation of Global X Physical Silver (ETPMAG)

Existing Holding: 1.25% @ $33.20

New Portfolio Allocation: 5% @ Average price of $39 (Silver spot price circa $28)

Entry price: $41.25 (Silver spot price circa $29.51)

Trim price: $50.00 (Silver Spot circa $34, +21.95%)

Target Price: $65.00 (Silver Spot circa $45, +55%)

Stop Loss: 15% trailing 

Rationale:

Precious metals have experienced strong performance recently, driven by a weakening US Dollar Index (DXY). Gold has notably surged to new highs, signaling robust momentum in the sector. Our preferred play within precious metals is Silver, due to its dual role as both a precious and industrial metal.

The strategic move is to add 3.75% Silver exposure via the ETPMAG, a physical silver ETF. This approach eliminates the risks associated with mining companies and provides direct exposure to silver prices. Silver has pulled back to favorable technical levels, presenting a buying opportunity.

The U.S. government debt has skyrocketed to a staggering $35 trillion, growing by $1 trillion every 100 days. Investors, wary of a potential USD currency devaluation, are increasingly turning to traditional stores of value like gold and silver. The Chinese central bank is the largest of these, reducing their US Treasury holdings by 35% this year and converting USD holdings to gold at a record pace.

This will lead to US credit rating downgrades and devalue the USD, which will see investors flock to the safety of traditional stores of value like Gold and Silver (click on article below)