Golden Opportunity in Gold Investment

“I like gold because it is a stabilizer; it is an insurance policy.” – Kevin O’Leary

Weekend Scan on Gold

On a weekend scanning noticed that there exist a short term golden opportunity on GOLD. The master of chart pattern – cup and handle have been forming in GOLD. Currently gold is bear market, but sometimes they give some short term relief. Looking at the technicals it looks like a short term rally expected. Currently gold is trading at 1200 range for Oz, it is expected to go to 1400. In terms of Gold ETF ( $GLD), currently trading at $ 122, expected around $138 to $140 – which would be around 15% returns.

What are the ways to invest in gold from low risk to high risk ?

  1. Buying Physical gold coins ( Low risk)  is best option for a long term growth.
  2. Buying Gold ETF  ( Low risk ) same mimics gold value. I prefer IAU ETF than GLD ETF because of low expense ratio.
  3. Getting powered up  and little risk side ( High risk )- when gold prices increases, gold stocks are expected to increase their revenue and profit margins. Top 3 gold mining companies
    1. Barrick Gold Corp
    2. Newmont Mining Corp
    3. Franco-Nevada Corp
  4. If risk needs to be diversified –  one can buy a basket of gold mining companies with ETF ( Medium ETF ). The popular ETF are $GDX ( VanEck Vectors Gold Miners ETF) and  small cap gold miner ETF $GDXJ ( VanEck Vectors Junior Gold Miners ETF). If gold moves 15% , miners ETF could go upto 30 to 50%.
  5. Option trading ( High Risk ) with GLD ETF –  If you are option trader , The June Call options are looking attractive.
  6. Super risky and amazing rewards strategy – Direxion Daily Gold Miners Index Bull 3X ( NUGT ) ( Extremely High Risk )  . This is leveraged ETF 300% percentage of the benchmark returns. If gold moves. On Friday Gold was up 1% ,NUGT is up around 8%. So if Gold trades  as expected , in next few weeks NUGT return can be more than 100%.

Where are you investing in GOLD now , share your thoughts.

“Gold is money. Everything else is credit.” – J. P. Morgan

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