To The Moon

🌟🌟🌟Silver has just breached USD 50 per ounce, its highest level since the Hunt brothers 'infamous cornering attempt in 1980.  Gold too has rebounded above USD 4,000, defying gravity and inflation alike.  These are not just numbers.  They are signals.  They whisper of uncertainty, of central banks hedging, of currencies wavering.  The big question is What Now?

Key Drivers Supporting the Rally :

Geopolitical Tensions : Trade wars, diplomatic standoffs and rising global conflict have driven investors toward safe haven assets.

US Government Shutdown and Fiscal Stress: Budget impasses and ballooning deficits have shaken confidence in traditional instruments.

Rate Cut Expectations : The markets anticipate multiple rate cuts in 2026, boosting non yielding assets like gold and silver.

Central Bank Buying :  Sovereign reserves are shifting from US Dollar to Gold.  In fact Central banks bought more gold in the last 4 years than in the previous 21 years.

Silver's Dual Role:  Silver isn't just a precious metal.  It is also used in industries.  Demand from solar panels, EVs,   5G and sensors is surging.

Technical Momentum :

Gold : Trading near USD 4000 with bullish momentum supported by central bank inflows and ETFs inflows.

Silver : Near USD 50, its highest since 1980.  RSI signals short term overbought but long term trends remains strong.

My Hedge: IAU and SLV

$iShares Gold Trust(IAU)$  is the second largest Gold ETF after $SPDR Gold Shares(GLD)$ .  IAU holds physical gold bullion stored in vaults.  It tracks spot Gold prices with a low expense ratio of 0.25%.  It is ideal for inflation hedging and portfolio diversification.  IAU is up 50% year todate. 

$iShares Silver Trust(SLV)$  is the largest Silver ETF with about USD 24 billion in Assets Under Management.  SLV seeks to reflect the price of silver.  SLV is up 68% year todate.  SLV holds physical silver bars.  It has an expense ratio of 0.50%.

Time to Buy Or Sell? 

I bought IAU and SLV as a hedge against inflation and portfolio diversification.  So far both ETFs have rewarded me with capital appreciation.  I believe that they still have more upside potential so I am definitely holding them, not selling.   

As Charlie Munger likes to say "The Big Money is not in the Buying and Selling but in the Waiting". 

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