JNUG Could Explode If Gold Follows Through On The Upside

Summary

  • Gold has been trending higher since the September 2022 low.
  • The long-term bull market in gold is twenty-four years old.
  • Gold mining shares tend to leverage percentage moves in the metal - Junior miners can provide even more gearing.
  • GDXJ’s price action from March 2020 to August 2020 is an example of an explosive move in gold, gold mining shares, and junior gold mining shares.
  • JNUG is a leveraged diversified junior gold mining ETF that turbocharges the GDXJ ETF - JNUG requires a price and time risk-reward dynamic, as timing is everything when using leverage.
  • Looking for more investing ideas like this one? Get them exclusively at Hecht Commodity Report. Learn More »

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Oselote

Gold reached a nominal record high in March 2022, when the price rose to $2,072 per ounce. Bull markets rarely move in straight lines, and the rally ran out of upside steam, leading to a decline to $1,613 six months later in September 2022, a 22.2% correction. Meanwhile, the

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This article was written by

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Andrew Hecht is a 35-year Wall Street veteran covering commodities and precious metals.

He runs the investing group The Hecht Commodity Report, one of the most comprehensive commodities services available. It covers the market movements of 20 different commodities and provides bullish, bearish and neutral calls; directional trading recommendations, and actionable ideas for traders. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The author always has positions in commodities markets in futures, options, ETF/ETN products, and commodity equities. These long and short positions tend to change on an intraday basis. The author is long gold.

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