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This Thread is Gold: Precious Metals ETF Universe Research

Hi all,

Today we are going to explore the Precious Metals ETF universe! The components of this universe are viewable on GitHub, and we’ll be posting links to fundamental research in the comments below.

Most of the ETFs derive their value from physical gold, silver, and platinum, except for two which track precious metal mining companies. The universe contains both long and short products, so short exposure can be achieved through DUST and JDST. 

One thing that makes metals so uncorrelated with the US equities markets is their global footprint. Mining activities are distributed all around the world, as are consumers and governments that want to store precious metals. Since there are relatively few underlying assets being tracked throughout this universe, we are able to go through fundamental pricing factors commodity-by-commodity. Remember, these articles are only scratching the surface. Read through them for inspiration, test out the ideas in the research environment, and combine them as you see fit!

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.



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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


Gold: GLD, IAU, NUGT, UGLD, DUST (short):

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


Silver: SLV, AGQ, USLV:

  • Silver price has been inversely correlated with USD (-0.53)
  • Higher bond yields may reduce the attractiveness of holding silver
  • High demand for technology products may increase the price of silver, as it is an excellent electrical and thermal conductor.
  • Jewelry demand may affect silver’s price. As consumers in developing nations gain more spending power, their appetite for jewelry may increase.
  • The “Gold-Silver Ratio” may be used as a peg for silver price, helping set a target.
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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


Miners: GDX, GDXJ, NUGT, JNUG, DUST, JDST

Platinum: PPLT

  • South African stability, where most platinum is mined, has been shown to affect platinum supply.
  • The automobile industry is one of the largest demand sources for platinum because of its use in catalytic converters. Therefore high demand for vehicles may indicate rising platinum prices.
  • Investment demand: cash inflows to platinum ETFs can be correlated with price.
  • When USD is weak, there is lower incentive to produce platinum since the US is most of the demand.
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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


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