Cheap pricing on bearish gold miner bets

|By:, SA News Editor

The price action in gold miners may tend to be down, but the relative cost of betting against further declines is as cheap as it's been in awhile, reports Bloomberg. The so-called skew on the GDX - the relationship between put option and call option pricing for the ETF - fell to 0.53 recently, the lowest since July 2009.

The so-called worry gauge for the metal itself - the CBOE Gold Volatility Index - dipped to a 7-month low last week. Gold is up a hair today to $1,286 per ounce, and the GDX is off 1.8%.

Gold miner ETFs: GDX, GDXJ, NUGT, DUST, GLDX, GGGG, RING, PSAU, JNUG, JDST