Investors who have followed what I've written in the past about how to play precious metals, and gold in particular, will know I prefer an exchange traded fund (ETF) holding to creating one's own portfolio from scratch.
The sentiment is perhaps elevated right now given what I view as largely unknown mine-specific COVID risks. Certain producers are having a tough time keeping production numbers up as COVID restrictions or government mandates slow down operations. This is particularly advantageous as we've seen the price of gold steadily trickle higher.
The VanEck Vectors Gold Miners ETF (NYSE:GDX) is one of my favorite topics for passive investors seeking a diversified way to play gold mining stocks.
This ETF’s broad holdings of gold producers provides investors with excellent operating leverage to the price of gold. This means those who believe, as I do, that the price of gold will continue to rise indefinitely (over the medium term at least) are able to disproportionately increase their returns when compared to owning gold futures or physical bullion itself .
As you’ve seen in the past, I'm very bullish on the long term outlook for precious metals, I believe gold could reach $10,000 per ounce this decade or so, if this level of money printing and central bank stimulus continues on at current levels.
Invest wisely, my friends.
