Supercharged Gold Mining ETFs

“Moderates…. HA!

“Good thing the founding fathers of this country weren’t moderates. There would be no U.S.A. otherwise!”

Interesting point.

And some D.C. scuttlebutt:

On the topic of moderate politicians, our first contributor says:

“One of the rumors making the rounds in D.C. is that Biden will join the Democrats running for president, and if he gets the nomination, he will select a Republican as his running mate.

“Now that would be fascinating to watch and certainly be a combo to replace Trump.”

Improbable but interesting.

Apropos of politicians, red, blue or moderates, a reader writes:

“What nearly everyone wants is a politician who tells lies that suit their preconceived ideas and prejudices.

“As I read decades ago, a political gaffe is when a politician accidentally tells the truth. And when one deliberately tells the truth? That is political suicide.”

Last, regarding our gold recommendation Friday…

“Every investor must have gold as insurance! But gold mining stocks supercharged my portfolio!”

Your Rundown for Monday, February 25, 2019:

Supercharge Me

Here’s a stock sector not necessarily supercharging your portfolio right now: consumer staples. When Kraft Heinz shares plummeted close to 28% Friday — the company’s biggest-ever selloff — so did consumer staples ETFs.

We’ve previously recommended one gold ETF: VanEck Vectors Gold Miners (GDX). And with gold’s ascension in 2019, mining stocks are getting a lift, too.

Now we’re recommending another gold mining ETF closely related to GDX — VanEck Vectors Junior Gold Miners (GDXJ).

chart

This is good to know: an exchange-traded fund (ETF) is similar to a mutual fund; it invests in a basket of securities and has built-in diversification. The difference between the two is ETFs trade throughout the day like stocks. Mutual funds trade only at the end of the trading day.

Most ETFs — not all — have lower operating expenses than actively-managed mutual funds. Because of that, ETFs might offer higher value to investors.

Back to GDX…early this month, the ETF signaled buy when it entered a “golden cross” when the 50-day moving average crossed above its 200-day moving. A historically bullish signal.

Since then, GDX has gained 5.24% while GDXJ has gained 6.53%. And if you’re following smart money, Oppenheimer & Co., Canada Pension Plan Investment Board and Morgan Stanley are among the institutions that have upped their positions in GDXJ.

Final word: gold and gold-mining stocks usually experience a lull into mid-March but the yellow metal and associated ETFs should rally even higher in the spring. And in 2016, the last time investors were so bullish on gold, GDX surged 151.2%.

These two gold ETFs are a bargain right now. With a lot of room to grow.

Market Rundown for Mon. February 25, 2019

S&P 500 futures are up 18 points to 2,810.96.

Oil’s down 18 points to $55.51 per barrel.

Gold is down $2.30 to $1,330.50.

Bitcoin is up $42 to $3,792.49.

Have a good day. We’ll talk tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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