At some point, gold stocks will become overextended again, and at that point you may wish to protect your profits by hedging your stock portfolio. The fund below moves inversely to the price of gold on a two to one basis. Assume you have $100,000 invested in Senior Large Cap Producing gold stocks. You could hedge your entire gold stock portfolio by purchasing $50,000 of this portfolio. If your stocks go down 10% ($10,000), this fund would go up (20% x $50,000= $10,000). Hedging your portfolio using this approach will enable you to maintain your core gold stocks. The time to lift the hedge would be when the indicators shown rise to the top of their resistance lines. If you become convinced that gold stocks will have a material correction, then you could simply buy this ETF for capital appreciation. Caution: This ETF is not going to move 2 to 1 for investors investing in small cap junior gold exploration companies. I update this chart daily at http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID1651222.
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