Market Vectors Junior Gold Miners ETF (GDXJ), SPDR Gold Trust (ETF) (GLD): The Way Ahead For Gold and its ETFs

On CNBC’s ‘Fast Money,’ the traders discussed on the prospects for investing in gold prices in the current market scenario and the performance of gold funds like Market Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) and SPDR Gold Trust (ETF) (NYSEARCA:GLD).

gold bars at Fed New York

Timothy Seymour, the Managing Partner of Triogem Asset Management and also a CNBC contributor, said that looking at the fund flows into gold and similar funds last week (Ex-: Market Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) and SPDR Gold Trust (ETF) (NYSEARCA:GLD)), it can be seen that there is an increase in the AUM and also retail money is back into gold.

But he added that there are some budget-related factors in India, which is one of the major consumers of gold, like the possible import ban on gold or the 80-20 import ban and according to him looking at the global supplies, the fear from gold is not helpful.

“Ultimately, you are in place where I think gold is in a very vicious bear market rally, and I think it is dangerous place to be buying gold, I think it is a dangerous place to be buying gold miners,” Seymour said.

One of the traders said that gold is in a very tight spot right now. He said that till the end of last year, gold was very down, and it has been a one way trend this year with the Market Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) is up 28%.

“You know, there was a trade in the options market today that really struck out because it was sizeable, somebody’s looking out to December and they bought 20,000 of the December 30-35 calls, for that breakeven is 10% away from here. So that person is committing a good bit of premium, but they don’t really probably want to own the underlying here, it’s kind of a leveraged trade. If you get that breakout, if you get the gold move to 1400, that trade is going to work.”

One of the other traders, Brian Kelly, who is the Founder and Managing Member of Brian Kelly Capital LLC, felt that it is more than just macroeconomics and in the case of India he said that as the Indian government did not lift the import ban on gold, there was a panic to buy gold in India which lifted up the prices this week.

He also added “I am long, and I think it goes higher.”

Kelly added that gold miners are doing what airlines did in the past i.e. learning to change their business and to run their business differently, which could be an inflection point.

Disclosure: none

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!