Winning Trades of Gold Stocks by Members…..
- VanEck Vectors Junior Gold Miners ETF (GDXJ) – up 308% and 132% respectively
- Agnico Eagle Mines Ltd (USA) (NYSE:AEM) – up 186%
by Ian Harvey
August 06, 2019
Gold stocks climbed significantly yesterday as trade tensions between the U.S. and China heated up. The dispute between the two superpowers has hit a new low point in negotiations and has created an extremely strong risk-off market sentiment causing U.S. stocks to plummet resulting in the largest single day decline this year. Investors are fleeing stocks for the perceived safety of tangible assets like gold, as well as domestic stocks with no exposure to China.
Gold is shining brightly because it always does well at times of economic chaos. At its low the Dow Jones Industrial Average was down well over 900 points trading to a low of 25,523.38. Although it closed off of its lows the Dow lost 767.27 points on the day, which is a net decline of 2.90%, as it settled at 25,717.74.
At the same time gold prices surged to the highest trading point over the last six years with December futures trading to a high of $1481.80. Currently gold futures are at $1476.00 which is a net increase of $18.50, gaining 1.27% on the day.
“Armchair Trader” members were already up 92% on one trade and 38% on the other after executing a “calendar spread,” as stated in the article “VanEck Vectors Junior Gold Miners ETF (GDXJ) Continues To Climb!”
But after yesterday’s stock market drubbing, and gold stocks continued to push upwards, GDXJ options trade profits have hit new highs – 308% and 132% respectively. To see the original recommended trade click here.
As for “Cut-to-the-Chase” members that executed an options call trade on Agnico Eagle Mines Ltd (USA) (NYSE:AEM) – they are now sitting on a potential profit of 186%. Is there more to come? The original recommendation can be seen here.
Gold stocks are the classic safe haven for protection of trader’s portfolios, as buying precious metals is insurance against economic chaos, and is also terrific for gold miner stocks.
The miners could have more backing and filling ahead but the path of least resistance remains higher. AEM could test $58 and GDXJ could surpass $42.50 as Gold establishes another, higher floor.
On Thursday of last week Trump sent out a series of tweets to announce the initiation of additional tariffs; and this news occurring in tandem with the Federal Reserve announcement of ¼% rate cut, which by many analysts was considered to be a hawkish cut; has seen tremendous pressure on U.S. equities and a defined, strong rally in gold.
It is not impossible, considering the circumstances, that this rally could easily take gold pricing over $1500 per troy ounce for the first time since April 2013.
Therefore, take advantage of any pull-back in gold stocks to buy weakness and look for fresh opportunities and value plays that are not so extended.
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
If you not a member and interested in being part of this profitable action just CLICK HERE.
AS ALWAYS THE DECISION IS YOURS!
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!