Investors bet against gold miners with bearish options like the Direxion Daily Gold Miners Bear 3X Shares (NYSEArca: DUST), the Direxion Daily Junior Gold Miners Index Bear 3X Shares (NYSEArca: JDST) and ProShares UltraShort Gold Miners (NYSEArca: GDXS). The Direxion options take the -300% exposure to large miners and junior miners, respectively, while the ProShares option take the -200% exposure to large miners and junior miners, respectively.
“I believe we have seen the worst for gold and are near the bottom, but if I’m wrong the junior producers are a safer bet. While some of the gold juniors will be taken out no matter what the gold price due to having world class gold projects, the junior producers are de-risked,” adds Seeking Alpha.
For more information on the gold bullion market, visit our gold category.
VanEck Vectors Gold Miners ETF