Volatility in U.S. equities, concerns over the Greek debt situation in Europe and geopolitical risks in the Middle East are fueling bets on gold as a safe-haven asset. Additionally, the U.S. dollar has somewhat depreciated, propping up USD-denominated commodities.
Adding to the ebullience surrounding gold miners is this anecdote. The Direxion Daily Junior Gold Miners Index Bear 3X Shares (NYSEArca: JDST) is the third-worst performer among Direxion’s leveraged bearish ETFs this month while being the most volatile. JDST has plunged 38.5% this month while the Direxion Daily Junior Gold Miners Index Bull 3x Shares (NYSEArca: JNUG) is higher by after Tuesday’s 11.3% gain.
Market Vectors Junior Gold Miners ETF
Chart Courtesy: Kimble Charting Solutions
Tom Lydon’s clients own shares of GLD.