Right off the bat, one must understand that chasing a trend is a rather dangerous thing to do. On the other hand, one must also understand that there may be more room to profit as a stock or commodity moves upward. This is a choice, made carefully, by any individual investor with advice from a registered investment advisor.
In this regard, one might consider the gold exchange traded fund, or (ETF). Gold commodity prices have been rising of late and do seem to have “legs” going forward as the US dollar continues to have issues. Although gold is rather tied to many aspects of the economy, many more knowledgeable indicate that a possible $2,000.00 per/oz could occur. Although this is pure speculation it nonetheless needs to be a consideration in the back of one’s mind. As has been pointed out in past posts, there are several ways to go about the process of investing in base metals. One such way is the exchange traded fund. These investment vehicles are essentially like mutual funds. The ETF product invests in several companies just like a mutual fund but are directed at a specific commodity or sector.
In the gold space there are several ETF products to choose from. Remember, however, that gains can be made and lost very quickly. Gold prices per/oz. today could be quite a bit lower tomorrow. As a base, however, consider $400.00 per/oz. as the point where a company will not be able to produce a profit.
Vectors Junior Gold Miners (GDXJ) might be of interest for the smaller gold companies found in Canada. SPDR Gold Shares are also up 25% this year as it works directly with hard gold bullion. As one considers their options in the gold space, they should understand that the high returns posted recently are high in just about all cases. A 10% portion of a portfolio is generally the recommended allocation for gold or any precious metal in a portfolio but should only be a consideration as one goes about speaking with a registered investment advisor. Always consult a registered investment advisor with your certain circumstances before making an investment in this space.