JNUG: This Junior Gold Mining ETF Could Deliver Senior Returns

Summary

  • New highs in gold - June futures trade to $2,085.40 after the May FOMC meeting and corrected.
  • The long-term trend is higher - the 1999 low was a bottom, and every dip has been a buying opportunity.
  • Junior gold mining shares can deliver significant returns - Exploration and high-cost production increase during bull market phases.
  • The Direxion Daily Junior Gold Miners Index Bull 2X Shares ETF eliminates some idiosyncratic risks - Diversification is critical in the volatile junior mining sector - Timing is crucial as JNUG suffers from time decay.
  • The reasons for an explosive gold move - the JNUG ETF could outperform if gold exceeds expectations - Only buy on price weakness.
  • Looking for more investing ideas like this one? Get them exclusively at Hecht Commodity Report. Learn More »

Gold.

artisteer

The bifurcation of the world's nuclear powers has changed the worldwide financial landscape. For decades, the U.S. dollar has been the world's reserve currency. While the dollar remains the most liquid foreign exchange instrument that is freely convertible, tensions between Washington, DC, and Beijing, the ongoing war

The Hecht Commodity Report is one of the most comprehensive commodities reports available today from a top-ranked author in commodities, forex, and precious metals. My weekly report covers the market movements of over 29 different commodities and provides bullish, bearish and neutral calls; directional trading recommendations, and actionable ideas for traders. I am offering a free trial and discount to new subscribers for a limited time. 

This article was written by

30.04K Followers

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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About JNUG ETF

SymbolLast Price% Chg
Expense Ratio
Div Frequency
Div Rate
Yield
Assets (AUM)
Compare to Peers

More on JNUG

Related Stocks

SymbolLast Price% Chg
JNUG
--