When Stock Just Don't Perform
Buying stocks whether it be mining stocks, tech stocks, blue chip industrials or what have you, the underlying issue is for the investor to make money. In order to make money you need to go long as in buy low and sell high or take a short postion on stock and hope it drops further. It seems like the old way of buy and hold strategy just doesn't seem to work any more. Low priced stocks just keep going lower, especially mining stocks. Good news of any kind of discovery is met with immediate profit taking akin to "buy the rumor sell the news". Great news is met with yawns an shrugs. So what are the options for someone who wishes to stay in metals to invest in aside from buying physical metal or out right buying into a mining operation?
One great way to invest or trade is by trading the metals ETF's. When it comes to ETF's though, most people only think that there is one or two ETF's that trade in metals. Those two being the
GLD SPDR Gold Trust (ETF) and the SLV being the iShares Silver Trust (ETF). what a lot of people do not know is that there are a lot of different ETF's to trade or invest in that are involved with mining and metals.
With silver ETF's there is the AGQ ProShares Ultra Silver (ETF). To compliment the AGQ there is a silver short ETF also. The ZSL is a an ETF that can be traded as a short side trade if you feel silver is going to be going down. In fact had you been a silver bear and traded this ETF, you would be up 50% YTD.
There are lot of different ETF's for you to choose from. Almost all large funds now have some kind of bull and bear gold or silver fund. One google look into gold ETF's and you will about 17 different gold related ETF's. While the GLD is by far the most known I learned that had I been a gold bear this year I could have bought DZZ the Deutsche Bank AG DB Gold Double Short ETN and been up 61% YTD on my investment. (However being a gold bull would have made it a tough decision to make a purchase on a gold bear play).
There is also ETF's for the miners. The most popular is the GDXJ being the Market Vectors Junior Gold Miners ETF. Market Vectors also has a rare earth ETF. The REMX. BMO also has a junior gold ETF the BMO Junior Gold ZJG and there is also the Claymore Global Mining ETF CMW.
No need to worry now about wondering if you should trade mining or metal stocks anymore. With ETF's going both bull and bear there is plenty of choices out there where you can trade or invest.
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