How to Play Your Gold Stocks Now
After a year or more of depressed prices, gold and silver stocks reversed with a vengeance. GDX (the ETF proxy for the Gold Miners Index) was up 27.1% in just two months (August and September). Those who followed our lead and bought or averaged down this summer have profited handsomely. It's been a fun ride, and I'm convinced we'll see many more surges like this before it's all over.
What was perhaps more important about the surge in gold stocks, though, was the leverage they demonstrated, which is one of the primary reasons we invest in them. Here's a comparison of GDX to GLD from August 1 to November 1.