Its Not Too Late To Ride The Bounce In The Gold Miners; How To Play It Right Now

After struggling for nearly a year straight, the gold mining stocks are starting to shine brightly. On average, they sold off more sharply than the price of gold in the past year. Gold prices dipped nearly 30% from their highs in 2011 to their lows in May. The gold miners, in contrast, as measured by the gold miner ETF (GDX), junior miners index (GDXJ) and Direxion Daily Gold Miner Bull 3X ETF (NUGT) were off a staggering 41%, 56% and 82%, respectively. They clearly had felt the brunt of that sell-off. Gold has traded in the $1,550 to $1,640 range since about late May, and is up 4% on the year so far. Gold was off to the races Tuesday as it was up nearly 17 dollars an ounce, breaking the $1640 mark. The ETF (GLD) was up over 1%, yet the gold miners were up significantly higher. At the time of this writing, the NUGT was up 6%, while the GDX and GDXJ were up 1.7% and 3.5%, respectively. I have previously recommended picking up the gold miners at the start of this upswing that began in August and I am reiterating my buy recommendation on the gold miners once again. Since trading began in August, the GLD is up 2% while GDX, GDXJ and NUGT are up roughly 10%, 13% and 25%, respectively. This is primarily because I see gold prices…READ MORE