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Trading Metals That Don’t Rust

Mar 9, 2021

By: Frank Kaberna

In the rush to find the next hot product filed under the much-memed acronym NFT, many traders are passing up the old classics - gold and silver. While they may not be able to get these metals to rust, new market participants are seeing if gold and silver can break as they move investment out of traditional vehicles and into newer assets like Bitcoin and whatever an NBA Top Shot technically is (DISCLAIMER: I own three NBA Top Shot Moments).

 

If It Ain’t Broke...

Opinions on the future of investing aside, you cannot debate the fact that metals have been as active as ever in the last year of trading. Gold made a new all-time high in 2020,* silver has shown some its highest volatility in years, and the pair have bounced back and forth for months allowing for opportunities to both buy or sell.

 

Rust Never Sleeps (SPRE (red) vs Gold (black) vs Silver (grey) )

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Source: dxFeed Index Services (https://indexit.dxfeed.com)

 

The Case for the Contrarian

Though metals have been knocked down several times in the past year, they’ve yet to be knocked out. Small Metals futures - gold, silver, and platinum in one product - have held above $70 since summer 2020, and they’re eyeing that level again.

Social media and talking heads have created an environment that asks you to draw a line in the sand and choose: Metals or NBA Top Shot. Why not both?

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Save Every Time You Trade the Smalls

The Small Exchange has also created a limited number of subscriptions for a one-time payment of $100 that give traders a lifetime of reduced exchange and market data fees when trading the Smalls.

For more information on the Small Exchange’s products and subscription service, visit smallexchange.com. And be sure to check out my new show on tastytrade, Small Stakes, where Pete Mulmat and I will show viewers how to navigate Small Exchange products every Monday-Friday and always on demand.

If you’d like to find out where to trade the Smalls products check out the list of brokers that offer their products, or tastytrade’s preferred broker tastyworks.


*Gold futures high on August 6, 2020 (https://cmegroup.com/)

© 2021 Small Exchange, Inc. All rights reserved. Small Exchange, Inc. is a Designated Contract Market registered with the U.S. Commodity Futures Trading Commission. The information in this advertisement is current as of the date noted, is for informational purposes only, and does not contend to address the financial objectives, situation, or specific needs of any individual investor. Trading futures involves the risk of loss, including the possibility of loss greater than your initial investment.


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