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

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 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

The 20 Biggest Contracts in MLB History

The 7 Worst Blown Calls in Sports History

7 Free Ways to Advertise Your Business Online

The 18 Best R&B Songs of the 90’s

The 10 Most Dangerous States to be a Cop

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!