For five years, from 2011 to 2015, the Gold Miners ETF (GDX) fell every year to bottom down 77% from the 2010 close. Last year, the crash reversed, and GDX gained 53%.
In the first eight months of 2016, the 3x Gold Miners ETF (NUGT) gained 637%, and then promptly fell by 85%, leaving it up 57% for the year.
ETF PM currently has long positions in (NUGT).
5 Reasons Gold Prices Will Explode — In a Good Way!
GLD, JNUG and NUGT are set up for massive profits
Jeff Reeves, 1/19/17
Gold prices were sleepy in 2016, on paper. The precious metal rose 9% compared with roughly the same gain for the S&P 500 index and the Nasdaq 100 Index.
But a closer look shows significant volatility along the way. In other words, if you bought gold at the bottom of about $1,050 a year or so ago and sold at the top of $1,400 or so in summer, you made a nearly 35% gain. On the other hand, if you bought the mid-year top and sold during the December lows for gold prices, you lost almost 20%.
This kind of movement is common in commodities like gold, crude oil and other materials. And wise investors know how to use the volatility in gold prices to their advantage.
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