A Small-Cap ETF – A Big Idea for Gold Bugs (GDXJ)
May 20, 2010 at 10:15 AM EDT
The fallout from plunging oil prices and Europe’s sovereign debt crisis has given investors few places to hide. Two asset classes are on the upswing lately: the U.S. Dollar and Gold. Both are seen as safe havens. Yes, they’re bouncing around a lot and are due for a correction. The current pullback could be a good buying opportunity. Today we’ll focus on gold-related investments. Thanks to ETFs, you can participate in gold’s rally without actually owning gold. You’ve probably heard of the SPDR Gold Shares (GLD). GLD is backed by physical gold holdings and has become the world’s second-largest ETF by assets, thanks to rising gold prices and huge cash inflows. Several smaller ETFs are also backed by physical gold. There are other ETFs to help investors play positive gold…