I am interested in building a long term position (2 to 5 years) in gold miners. My online broker does not have access to the Tocqueville Gold Fund so I have found two EFTs that could do the job for me. Market Vector Gold Miners GDX and MV Junior Gold Miners GDXJ.
Should I split my position 50/50 or one is better than the other?
P.S: My view is a +/- 20% downside in both ETFs in the coming weeks/months (bottom fishing time) and then cross fingers and wait patient for the mother of all bull markets in gold miners. (It is simply my view, most likely a wrong one, it is not a prediction)
I wouldn’t buy any mines now. If the gold price declines further (which I think it will) most mines can not survive because their costs are too high. The mines expanded in anticipation of higher gold prices and now they are stuck with over production and huge losses.
I believe the world is deflating, so all commodities, including gold, will decline further, especially if interest rates rise which is likely at this point.
That said, I did buy just 1000 shares of LYDIF for amusement when it was in the 65c range, but I am not keen to add to that position. IVN looks so tempting, but too dangerous for my taste.
I stick to my position of holding the dreaded and feared fiat reserve currency for all the reasons I have written previously. I’ll buy your gold when it is cheap!