“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 ?
- Buying Physical gold coins ( Low risk) is best option for a long term growth.
- Buying Gold ETF ( Low risk ) same mimics gold value. I prefer IAU ETF than GLD ETF because of low expense ratio.
- 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
- Barrick Gold Corp
- Newmont Mining Corp
- Franco-Nevada Corp
- 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%.
- Option trading ( High Risk ) with GLD ETF – If you are option trader , The June Call options are looking attractive.
- 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