ETF traders who are uncomfortable with the riskier 3x products can also track the miner space with a smaller 2x leverage. For example, the ProShares Ultra Gold Miners (NYSEArca: GDXX) and ProShares Ultra Junior Miners (NYSEArca: GDJJ) take the 2x or 200% daily performance of NYSE Arca Gold Miners Index and Market Vectors Global Junior Gold Miners Index, respectively.
“The 8-year chart for the PM stocks index proxy, GDX, also looks very similar to that for gold, except that it is somewhat upwardly skewed, which reflects the wild excitement of speculators in this sector once they sense a turn. There was a really big percentage gain during the first half of last year as it came off a really low level but, as with gold, GDX was rising to complete the head of the head-and-shoulders bottom pattern,” according to ETF Daily News.
GDX is comprised of global gold miners, with a notable tilt toward Canadian and U.S. mining companies. Nevertheless, gold assets may have further room to fall if the U.S. dollar and real bond yields continue to rise.
For more information on the gold market, visit our gold category.