Talk about the recent surge in the gold market.
$VanEck Gold Miners Equity ETF (GDX.US)$ In fact, the gold market has been going on for a long time. If you want to seize this market trend, I would recommend buying gold ETF.
First of all, the conclusion is that gold has entered a bull market once in ten years. There are several reasons:
1. China and the United States have simultaneously increased their fiscal budget expenditures, which also means that the global money supply is accelerating.
2. Geopolitical conflicts and the global entry into an interest rate cut cycle will support the continuation of gold's upward trend.
3. Gold mining stocks are catching up with the rally in physical gold. According to statistics from Morgan Stanley, historically, after the first interest rate cut, the reactions of gold and gold mining stocks are often positive. However, within the first 100 days and 300 days after the announcement of an interest rate cut, the performance of gold mining stocks is on average 10% and 27% better than that of physical gold respectively. The performance of gold mining stocks still lags behind that of physical gold.
There are several ETFs to choose from. If you are looking for excitement, you can play $DB GOLD DOUBLE LONG EXCH TRADED NOTES (DGP.US)$.
If you are looking for stable tracking, choose $VanEck Gold Miners Equity ETF (GDX.US)$ . When the underlying assets of ETFs are similar, choose the one with better liquidity to avoid excessive bid-ask spreads.
If the underlying assets of ETFs are similar, choose the one with better liquidity to avoid excessive bid-ask spreads.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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