These acquisitions could be a big opportunity for junior miners like Northern Star Resources Ltd. Evolution Mining Ltd.
On the other hand, if the deal falls through for good, both Barrick and Newmont are facing the same old problems of debt-laden balance sheets and stagnating global supply. At the same time, though it has slid marginally in recent months, the U.S. dollar remains a strong safety investment. As far as other precious metals are concerned, gold is still competing with the ultra in-demand palladium, up 23 percent YTD, and even platinum, up 8.6 percent YTD, as the best near term growth investment.
At the very least, the consolidation among gold miners has given equity traders something to look forward to. You would think, given the uncertain geopolitical picture, that gold will remain a viable option for investors seeking safety. But until it can breach that massive technical resistance, we shouldn’t expect too much from the yellow metal.
Related Leveraged ETFs
- Direxion Daily Gold Miners Index Bull 3X Shares (NUGT)
- Direxion Daily Junior Gold Miners Index Bull 3X Shares (JNUG)
- Direxion Daily S&P 500 Bull 3X Shares (SPXL)
This leveraged ETF seeks investment results that are 300% of the return of its benchmark index for a single day. The ETF should not be expected to provide returns which are three times the return of its benchmark’s cumulative return for periods greater than a day. Investing in a Direxion Shares ETF may be more volatile than investing in broadly diversified funds. The use of leverage by an ETF increases the risk to the ETF. The Direxion Shares ETFs are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk, consequences of seeking daily leveraged investment results and intend to actively monitor and manage their investment.
Direxion Shares Risks – An investment in each Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with the Funds’ concentrating their investments in a particular industry, sector, or geographic region which can result in increased volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. Each Fund does not attempt to, and should not be expected to, provide returns which are three times the return of their underlying index for periods other than a single day.
NUGT Risks –Risks of the Fund include Effects of Compounding and Market Volatility Risk, Leverage Risk, Counterparty Risk, Intra-Day Investment Risk, Valuation Time Risk, risks specific to investment in securities in the Gold Mining Industry, such as Emerging Markets Risk, Gold and Silver Mining Company Risk, Mining and Metal Industry Risk, and Canadian Securities Risk, Daily Index Correlation/Tracking Risk and Other Investment Companies (including ETFs) Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of the Fund.
JNUG Risks –Risks of the Fund include Effects of Compounding and Market Volatility Risk, Leverage Risk, Counterparty Risk, Intra-Day Investment Risk, risks specific to investment in the securities of the Gold Mining Industry, such as Emerging Markets Risk, Australian and Canadian Securities Risk, Gold and Silver Mining Company Risk, and Mining and Metal Industry Risk, Daily Index Correlation/Tracking Risk and Other Investment Companies (including ETFs) Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of the Fund.
SPXL Risks –Risks of the Fund include Effects of Compounding and Market Volatility Risk, Leverage Risk, Counterparty Risk, Intra-Day Investment Risk, risks specific to the securities that comprise the S&P 500® Index, Daily Index Correlation/Tracking Risk and Other Investment Companies (including ETFs) Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of the Fund.
An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 646-569-9363 or click here. A Fund’s prospectus and summary prospectus should be read carefully before investing.
