In a week marked by extreme volatility in gold and silver prices, investors are presented with opportunities to capitalize on the increased market activity. According to UBS Securities and Treasury (UBS S&T), gold and silver have experienced their most volatile weeks in over 40 years, with some of the price action potentially exacerbated by hedging of large call positions built up through January, as well as leveraged/inverse ETF positions in silver that rebalance daily. Despite these fluctuations, gold and silver remain positively positioned for the year.

For investors looking to add exposure to the precious metals market, UBS Research recommends considering call-spread-collars on the Gold Exchange-Traded Fund (ETF) (GLD) or bull-collars on the Gold Miners ETF (GDX). Implied volatilities have softened since the weekend, but remain elevated compared to historical norms.

The recent price action highlights the importance of staying informed and adaptable in today’s fast-paced markets. By staying up-to-date on market trends and taking advantage of opportunities as they arise, investors can position themselves for success in the precious metals market. Whether you’re a seasoned investor or just starting to explore your options, now may be an ideal time to consider adding gold and silver to your portfolio.