Gold, Silver, and Miners in Stage 1 Accumulation Mode
The market seems to be setting up for some very large moves in 2013. Here's a look at the charts.
Battle of the Miner ETFs Weekly Performance:
This chart compares three precious metals miner ETFS (Market Vectors Gold Miners ETF (NYSEARCA:GDX), SIL, and Direxion Shares Exchange Traded Fund Trust (NYSEARCA:NUGT)).
Silver miners have held up the best because the herd saw how big the move was a year ago and is front-running the next potential rally. But, depending on how you read the charts and sentiment, it may be pointing to the dormant gold miners for a bigger-than-expected rally. But debating which one will break out and run the most is a conversation/debate of its own and even I can argue both sides.
The safe play? Even if gold miners (GDX and Market Vectors Junior Gold Miners ETF (GDXJ)) underperform the silver miners (SIL), the NUGT, which is 3x leveraged gold miners, should be the same if not outperform silver miners.
Precious Metals & Miners Trading Conclusion:
In short, I favor trading the miners over physical bullion simply because the charts show much more profit potential than if one was to buy the bullion exchange traded funds SPDR Gold Trust ETF (NYSEARCA:GLD) and SLV.
The market seems to be setting up for some very large moves in 2013.
Editor's Note: Chris Vermeulen offers more content at his sites, TheGoldAndOilGuy.com and Traders Video Playbook.
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