Gold Bullion (GLD) Vs. Gold Stocks (GDX)
- Thread starter simranlalia1
- Start date
GLD invests in physical gold and GDX invests in companies related to gold.
If market goes down then it will take majority of stocks down with it. More over investment in companies are subjected to other risks like mgmt quality, their competitiveness in the mkt etc..
With GLD, these risks are not there.
So, take you pick in terms of risk attached to these etfs. GLD = lower risk, but lower returns.
GDX = higher risk, but possible higher return as well (depending on mkt coniditions and the skill of fund manager in picking right companies).
Happy Gold investing.
If market goes down then it will take majority of stocks down with it. More over investment in companies are subjected to other risks like mgmt quality, their competitiveness in the mkt etc..
With GLD, these risks are not there.
So, take you pick in terms of risk attached to these etfs. GLD = lower risk, but lower returns.
GDX = higher risk, but possible higher return as well (depending on mkt coniditions and the skill of fund manager in picking right companies).
Happy Gold investing.
Gold is breaking out of 1000/1030 today. GLD is breaking out with more then double of average traded volume (10million v/s todays volum of 23 mil).
USD and Gold are inversely related.. so if USD goes down, Gold will go up (assuming no change in demand supply equation). Though, I strongly feel that the way global economic scene is developing, gold demand is going to be high.
In short term (next few days, we might see pullback to 1000/950 level, cause USD is in oversold zone. So it can come in demand at any time (if nothing else then just for carry trade i.e. borrow USD loan at 0% and put in Australian Dollar at 3.25%).
Quite possible the rumor of certain countries talking about pricing oil in non USD terms is just a news/rumor. so I will trade it the way one would trade a news event i.e. without giving it too much importance but pay full respect to price action and price fundamentals.
Happy trading
USD and Gold are inversely related.. so if USD goes down, Gold will go up (assuming no change in demand supply equation). Though, I strongly feel that the way global economic scene is developing, gold demand is going to be high.
In short term (next few days, we might see pullback to 1000/950 level, cause USD is in oversold zone. So it can come in demand at any time (if nothing else then just for carry trade i.e. borrow USD loan at 0% and put in Australian Dollar at 3.25%).
Quite possible the rumor of certain countries talking about pricing oil in non USD terms is just a news/rumor. so I will trade it the way one would trade a news event i.e. without giving it too much importance but pay full respect to price action and price fundamentals.
Happy trading
Read this article....it answers all your query :thumb:
http://www.hardassetsinvestor.com/features-and-interviews/1/1768-gold-stocks-vs-gold-whos-winning.html
http://www.hardassetsinvestor.com/features-and-interviews/1/1768-gold-stocks-vs-gold-whos-winning.html
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