The gold bulls are running, but will they eventually outpace themselves? A recent MarketWatch report noted that bullishness among gold’s most staunch supporters is reaching higher heights, which isn’t always a good thing.

“A big test for contrarian analysis is brewing in the gold pits,” the report said. “That’s because bullishness among gold market timers has rarely been higher than it is today. Since 2000, which is when I began tracking the average recommended exposure level among such timers, optimism about gold was higher on just 0.7% of the trading sessions.”

“Historically gold and gold-related investments have on average performed markedly better when the gold timers were far more skeptical of the yellow metal,” the report added. “This in turn suggests that the gold bulls need to be patient in their expectation that gold will soar in the next couple of weeks to a new all-time high. That record high is close to $1,900 per ounce.”

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Gold Price in US Dollars Chart

Gold Price in US Dollars data by YCharts

ETF investors can get in on the bullishness via the following funds:

  • VanEck Vectors Gold Miners (NYSEArca: GDX): seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE® Arca Gold Miners Index®. The index is a modified market-capitalization weighted index primarily comprised of publicly traded companies involved in the mining for gold and silver.
  • Direxion Daily Jr Gold Miners Bull 3X ETF (NYSEArca: JNUG): seeks daily investment results, before fees and expenses, of 200% of the daily performance of the MVIS Global Junior Gold Miners Index. The index includes companies from markets that are freely investable to foreign investors, including “emerging markets,” as that term is defined by the index provider.
  • Direxion Daily Gold Miners Bull 3X ETF (NYSEArca: NUGT) : seeks daily investment results, before fees and expenses, of 200% of the daily performance of the NYSE Arca Gold Miners Index. The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments, such as swap agreements, and securities of the index, ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index is comprised of publicly traded companies that operate globally in both developed and emerging markets, and are involved primarily in the mining for gold and, in mining for silver.

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