The top five holdings of this gold ETF are: Goldcorp Inc (GG.TO, 6.86% of assets), Barrick Gold Corporation (ABX.TO, 6.56%), Newmont Mining Corporation (NEM, 6.46%), Newcrest Mining Ltd (NCMGF.AX, 5.27%), and Agnico Eagle Mines Limited (AEM.TO, 5.23%).
Market Vectors ETF Trust - Market Vectors Gold Miners ETF (GDX)
from Stock Trader’s Almanac
June and July tend to offer few high-probability seasonal trading opportunities in typical years. This year is shaping up to be somewhat typical. We have already seen some volatility trickle into the markets and trading volume has been light as more and more traders and investors take time off to enjoy summer.
July’s last seasonal opportunity is based upon the PHLX Gold/Silver index. Over the past fifteen years this index has produced an average gain of 14.6% from its end of July lows to its late December highs. The index is comprised of 30 precious metal mining company stocks.
Obviously, moves higher by physical gold and silver would benefit the companies that mine the metals, but the stocks can also rise in anticipation of higher precious metals prices and during periods of uncertainty. Market Vectors ETF Trust - Market Vectors Gold Miners ETF (GDX) is the ETF of choice for this trade.
It has more than $6 billion in assets and has traded nearly 40 million shares on average over the past three months. Because seasonal strength does not typically begin until late-July, we will be patient and look to add GDX to the ETF Portfolio on dips below $19.25. If purchased set an initial stop loss at $17.33 and take profits at the auto-sell price of $24.27.
Jeffrey A. Hirsch, Stock Trader’s Almanac, www.stocktradersalmanac.com, 800-762-2974, June 2, 2015