Just got done reading an interesting article on futures for commodities. I've listed the link below and would like to point out the graph (exhibit 1) on page 3. I am fairly new to the world of ETF's, but it appears as though futures contracts on PM's are on the rise. How do you feel about ETF's and do you see a correlation between oil prices/PM prices as stated in this write-up? http://www.slcg.com/pdf/workingpapers/Commodities_ETFs.pdf
I would be hesitant to generalize PMs as a whole. Gold & Silver are quite different as investments and it would pay the interested party to take the time to understand these differences. This is especially true for the short term. ETFs are paper investments and as such, don't serve the same role for investing as physical bullion.
The ETFs are a good idea except when it comes to tax season. If you follow the rules, it's a headache. I tend to avoid them in favor of CEF. However, CEF is a PFIC and also has tax complexities unless held in a tax deferred account. I don't think the relationship between oil, gold and silver has any cause/effect relationship, so I tend to ignore it.
