GDX
Posted: Wed Mar 20, 2013 5:55 am
You have GDX from highs close to 70 down to 38 and change. You have an inflation starting to pick up. You have commodities in general sold off hard. If your a risk/reward player, this looks to me like a fabulous place to park some cash. It reminds when everyone hated gold when it was around $260 an oz. I bought a ton of it, not so much because I thought it was going to go up to $1600. as there was little risk in getting creamed if I was wrong being down and hated, a pure contrarian play. The chart of GDX feels that way to me today. Everyone has given up on miners and their stocks are being sold for pennies on the dollar and surely, there is a lot less risk here then in say, SPY running close to all time highs. Granted the general market can surge another 1000 points since it's flat over a ten year period, but price wise but for my money, GDX is a smart play in the next one to three years for a double you not likely to see in SPY. Ok, so lets say your wrong and it doesn't move up or much, your still in the game for when it does and you haven't taken huge risks. Wealth in the ground doesn't go to zero and there are not building any more land to mine. Just one man's opinion here but this thinking has saved me from the last financial debacle.