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Contributed Commentaries

Gold for the brave

Jonathan Da Silva

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

Physical gold is timeless money, but for the brave speculators, there are times whereby getting exposure to the gold price via gold mining stocks or mining stock exchange-traded funds (ETF's) may be an attractive proposition.

For the truly brave, perhaps leverage to the gold price via owning shares of a mining company isn't enough, and a further leveraged ETF is the trading instrument (not an investment) of choice. The below chart is one of a double leveraged gold miner ETF shown on a weekly timeframe. The yellow highlighted areas are zones whereby price stretched far beyond the 200-week average and needed to "snap back"; will the current low play out as it has over the last two years?

The blue arrows indicate points of interest: The first shows a negative divergence on the weekly stochastics compared to price (sell signal), and the second shows a wide open gap that could just be waiting for the price to eventually fill.

By Jonathan Da Silva

Contributing to kitco.com

Contact jdasilva@kitco.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.