Introducing New Gold ETF

Once Gold broke the $1000 resistance level, it has been on nothing but an upward trend. It has quickly broken the next two projections at $1080 and $1160. Gold will continue to go up as long as the dollar is weak. As dollar gains strength, Gold will lose steam and will go the reverse direction. But for now, Gold’s next target is at $1240. Investors should not be asking themselves if today is a good time to get into Gold. Instead, they should be asking themselves how they can buy Gold now.

The two ETFs, SPDR Gold (GLD) and Gold Miners ETF (GDX), have done very well, as Gold price continued to move upward. GDX has done better than GLD in 2009. GDX has gained 46% while GLD has gained 25%. However, there is now a new ETF that could serve you even better than the first two ETFs. It’s called Market Vectors Junior Gold Miners ETF (GDXJ). Unlike the other two ETFs, GDXJ provides exposure to junior gold miners. Since these junior gold miners markets are smaller, the potential for their growth is much higher compared to other Gold ETFs. The portfolio of GDXJ consists of 39 different junior gold miners. GDXJ will experience more volatility than GDX and GLD since many companies in the portfolio are still in early stage without much revenue. For short-term investors, GDXJ has a higher potential compared to GDX. For long-term investors, I do not recommend GDXJ due to higher volatility. Instead, GLD could be more attractive in your diversified portfolio.

I do not own GDXJ as of today. But, I plan to buy shares of GDXJ sometime this week as a short-term investment. I am confident that as Gold prices continue its movement upward, GDXJ will definitely reap the benefit.

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