This gold-related ETF is crushing the stock market’s gains in 2019 — and analysts say the metal …

On top of that, a pair of hedge-fund investors also have recently endorsed gold, Bridgewater Associates Ray Dalio and Paul Tudor Jones.

Gold futures are brandishing lustrous gains but a popular exchange-traded fund focused on companies that mine the yellow metal is en fuego.

The VanEck Vectors Gold Miners ETF GDX, +4.28% boasts a roughly 33% year-to-date gain, far surpassing gains of the underlying metal. Gold futures are up nearly 13% so far this year, by comparison, based on the most-active August contract trading on Comex GCQ19, +1.69% according to FactSet data. Prices of the yellow metal carved out a fresh six-year high at $1,428.10 an ounce, and gold miners have apparently been big beneficiaries.

Jeff deGraaf, technical analyst at research firm Renaissance Macro, said he sees room to run for gold and specifically the mining ETF in a Thursday research note.

“We see momentum building in the miners again and it’s likely that the next leg higher is starting with yesterday’s breakout,” the analyst wrote.

To put the gains for the GDX, referring to the ETFs ticker symbol trading on the NYSE Arca, into perspective, the Dow Jones Industrial Average DJIA, +0.01% is up nearly 17% in 2019 so far, the S&P 500 SPX, +0.36% has gained more than 19%, while the Nasdaq Composite Index COMP, +0.27% boasts a rich 24% climb over the past seven months.

Fawad Razaqzada, market analyst at Forex.com, said that gold has more room to run: “The bulls’ next target could be the underside of the rising trend capping the prior highs, which comes in around $1460, with the psychologically-important $1500 hurdle being the subsequent objective,” he wrote in a Thursday report.

Gold has benefited from a number of factors but popped in electronic trading late Thursday after New York Fed President John Williams made comments that the market implied as raising the likelihood that the Federal Reserve may take more aggressive action at the end of this month to stave off a tariff-induced slowdown in the economy. “When you only have so much stimulus at your disposal, it pays to act quickly to lower rates at the first sign of economic distress,” Williams said at a research conference.

Those comments at least partly helped to drive debt yields lower, with the 10-year Treasury note falling to 2.03%, as well as the dollar, which was down 0.5%, as measured by the ICE U.S. Dollar Index, providing bullish support for dollar-denominated bullion, which doesn’t offer yield, and the mining ETF, which has tended to see amplified moves compared against the metal.

Among the components of the fund, shares of Eldorado Gold Corp. ELD, +2.83% are up 167% year to date, Alacer Gold Corp. ASR, +6.07% has climbed 110%, while Semafo Inc. SMF, +0.37% is up 94% over the same period.

Even before Williams remarks, gold has been in rally mode, amid monetary policy around the globe that appear to be on a decided easing path and negative yielding sovereign debt that has made gold an attractive option to bulls. On top of that, a pair of hedge-fund investors also have recently endorsed gold, Bridgewater Associates Ray Dalio and Paul Tudor Jones.

World’s Largest Hedge Fund Turns Bullish On Gold

Billionaire hedge funder Ray Dalio of Bridgewater Associates has taken to social media to declare that he is now jumping on the gold bandwagon.

Gold is just coming off a turbulent 3-week period after a much-expected rate cut in July failed to materialize courtesy of astronger-than-expected jobs report for June that sent traders running for the hills.Yet, the latest disappointment has failed to dampen the mood in the bull camp.

Billionaire hedge funder Ray Dalio of Bridgewater Associates has taken to social media to declare that he is now jumping on the gold bandwagon.

In a7,000-word screed on LinkedIn, Dalio has termed the underlying catalysts driving the gold momentum a ‘Paradigm Shift. ’ He argues that the long-term direction for global monetary policy towards perpetually low interest rates over the past 50 years equates to a paradigm shift which makes the yellow metal a good portfolio diversifier.

The upshot of it all:

“For this reason, I believe that it would be both risk-reducing and return-enhancing to consider adding gold to one’s portfolio. I will soon send out an explanation of why I believe that gold is an effective portfolio diversifier.”

Bridgewater Associates manages $125 billion in assets thus making it the world’s largest hedge fund.

(Click to enlarge)

Source: TradingView

Perpetually low-interest rates

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Source: CNBC

Dalio’s prolix certainly seems to hold water.

It’s easy to get lost in the nitty-gritty of short-term changes in Fed policy. Yet, if you zoom out and look at the bigger picture, interest rates across global economies have been in terminal decline for years–if not decades.

In the U.S., interest rates are at historic lows and have hit a new zero-bound trajectory.

In the year-to-date, 10-Year Treasury notes have declined from a high of 2.78 percent to 2.05 percent currently. Despite the job market throwing an unexpected curveball, traders are still overwhelmingly bullish that the Fed will lower rates sooner rather than later.

In fact, Fed fund futures are pricing in a 93.5-percent chance for a quarter-point rate cut next month with only a 6.5 percent probability for no-rate changes.

The situation is even more dramatic in Europe and Japan with sovereign debt in sub-zero territory in many cases.

For a long time, negative interest rates have been considered an unconventional last-ditch monetary policy tool. Sweden’s central bank was the first to deploy them a decade ago when it lowered its overnight deposit rate to -0.25 percent. Other European banks and Japan have since then followed suit resulting in nearly $10 trillion in government debt carrying negative rates.

Related: Tesla, Apple Claim China Is Stealing Intellectual Property

These policymakers have been using negative rates as a tool to encourage spending and stimulate weak economies.

The ECB has also turned to negative rates as a means to lower the value of the euro and stimulate demand for exports. Below-zero rates are a high-risk strategy because they could potentially backfire by discouraging banks from lending if profit margins get squeezed too much.

However, central banks in the region have little recourse with the European Commission recently lowering regional growth projections from 1.9 percent to 1.5 percent for the current fiscal period.

Playing the gold bull market

With central banks everywhere forced to adopt a decidedly dovish stance, it appears like gold is set for a long-term bullish trajectory. The million dollar question now is how to position yourself for maximum returns.

Bullion prices are up 11.4 percent this year; however,they have nothing on gold stocks which have been on a roll.

Gold stocks are a levered play on the yellow metal, amplifying its moves 2x-3x. Stocks of both gold juniors and their heavyweight brethren are up more than 2x relative to bullion.

The VanEck Vectors Gold Miners ETF (GDX) is up 28.45 percent YTD while VanEck Vectors Junior Gold Miners ETF (GDXJ) has racked up gains of 24.75 percent.

(Click to enlarge)

Source: CNN Money

For more adventurous traders,Invesco Oppenheimer Gold and Special Minerals Fund (OPGSX) provides diversified exposure to gold and other precious metals. OPGSX has rallied 31.6 percent in the year-to-date.

(Click to enlarge)

By Alex Kimani for SafeHaven.com

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Palpable Fear In Japan Over Cryptocurrency ETFS Because Of Price Volatility

At the gathering, Takeshi Fujimaki a political figure, revealed that the digital currency and the blockchain community could see the United States …

Japan is wary of cryptocurrency based ETFs (Exchange-Traded Funds) due to volatility in price. This is according to the comments from the upper house of the National Diet that took place recently. Japanese Financial Service Agency (FSA), the country’s monetary supervisory body expressed an alert stance towards ETFs.

At the gathering, Takeshi Fujimaki a political figure, revealed that the digital currency and the blockchain community could see the United States Securities and Exchange Commission (US SEC) approve or disapprove a crypto ETF. He also referenced the reassuring and discouraging comments made by Hester Peirce, the SEC Commissioner.

Takeshi called upon all financial bodies and Japanese people taking part in this budding and productive industry not to be left behind immediately after the SEC makes their decision on Bitcoin ETFs. The politician is worried about the security of crypto exchanges and users.

There are many threats plaguing the industry some of which are cryptojacking, hacking, fraud and others related with Bitcoin and other major cryptocurrencies that are trying to tarnish or affect the image of these novel innovations.

So, if the ETF decision is made, cryptocurrencies will be highly trusted by the banks and stored by several upholders, and such assets like this will lead to a significant growth in the market. In return, it will attract a multitude of institutional investors who would make enormous investments in cryptocurrencies and Blockchain. This would effectively reduce volatility and instability of cryptocurrencies in general.

However, not all of the members of the FSA committee are thinking in the same direction about the topic of exchange-traded funds. One member made some antagonistic views stating that Bitcoin and all other forms of virtual assets do not have intrinsic value, this according to him is the main cause of price fluctuations.

In reply, Takeshi said by making a supportive stance towards the approval of ETF, he believes will stop the value instability of Bitcoin and other virtual assets. If this is done, it will turn them into a profitable financial investment.

It seems the United States SEC shares the same opinion, because for a while now, they’ve been constantly postponing their approval of the ETF. Late last month, the financial supervisory body once more postponed an approval on VanEck crypto ETF.

The reason for this delay according to them is that they need more time to gather valuable information, concerns and opinions when it comes to cryptocurrencies and the Blockchain in general.

The US SEC set fourteen questions to that needed urgent answers by the crypto community and all concerned parties, so they can make a verdict on the issue.

Generally, the questions center on the the public interest and security of investors. The SEC will then make a decision on the ETF when they believe all their doubts and questions are answered.

Source:https://coinidol.com/japan-price-volatility/

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SEC Kicks Can on Bitcoin ETF Decision

… to crypto currency fans who have been speculating that the agency would give a thumbs up to the proposal by Cboe Global Markets Inc. Reactions …

In a move that was largely expected, the U.S. Securities and Exchange Commission postponed its decision to approve a plan by Cboe to list a Bitcoin ETF from VanEck Associates Corp and SolidX Partners Inc, saying that it needs time to gather more information.

“The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,’ and ‘to protect investors and the public interest,’” according to a statement from the SEC.

The move came as a disappointment to crypto currency fans who have been speculating that the agency would give a thumbs up to the proposal by Cboe Global Markets Inc.

Reactions to the decision have been mixed.

According to an article in Forbes, there are a couple reasons for optimism. First, the approval wasn’t flat out denied. And second, the SEC is taking time to gather the options of the public, which includes a large community of supporters.

“Thus, it may be appropriate to think that approval of a Bitcoin ETF is only a matter of time and that the day isn’t too far away when the sun will shine,” according to Forbes. “If the SEC decides that it is about time to let things go and turn on the green light for the Bitcoin ETF, it could create a major FOMO among investors which could lead the price ripping to the upside.”

Others like Bloomberg Intelligence analyst Eric Balchunas are a bit less optimistic. “It’s not a big surprise that the SEC is putting off this decision,” he said in a Bloomberg article. “But given that their issues are with the underlying Bitcoin market, not sure why they just don’t deny it as opposed to stringing along the crypto faithful with false hope.”

Commenters must send in their materials within 21 days from publication in the Federal Register and interested parties have 35 days from publication in the Federal Register to send in rebuttals to comments, according to the SEC statement.

Learn more about crypto-currency ETF trends here.

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Japan in Fear of Cryptocurrency ETFs Due to Price Volatility

Japan is suspicious about cryptocurrency-based exchange-traded funds (ETFs) due to price volatility. According to the remarks from the upper house …
Jun 02, 2019 at 12:38 // News
Author

Coin Idol

Japan is suspicious about cryptocurrency-based exchange-traded funds (ETFs) due to price volatility.

Japan is suspicious about cryptocurrency-based exchange-traded funds (ETFs) due to price volatility. According to the remarks from the upper house of the National Diet that happened recently, the country’s monetary watchdog Japanese Financial Service Agency (FSA) expressed a watchful stance towards ETFs.

At the meeting, a political figure Takeshi Fujimaki, revealed that the blockchain and digital currency community could very soon see the United States Securities and Exchange Commission (US SEC) approve or disapprove a cryptocurrency ETF, and also referenced encouraging and discouraging made by Hester Peirce, Commissioner SEC.

Cryptocurrency to be Entrusted by Banks

Takeshi called upon all Japanese people and financial bodies participating in this nascent productive industry not to be left behind following the SEC’s decision on Bitcoin ETFs that will soon be made. The politician is concerned about the security of users and crypto exchanges, there are many threats including hacking, cryptojacking, fraud and others associated with Bitcoin and other major digital currencies, that are trying to affect or tarnish the image of these innovations.

So, if the ETF verdict is reached, digital currencies will be highly trusted by the banking institutions and stored by upholders, and such a financial asset will cause a significant market growth by attracted a multitude number of institutional investors to make massive investments in blockchain and cryptocurrencies, and further reduce on their volatility and instability level.

ETF Support to Boost the Cryptocurrency Market

However, not all the FSA committee is thinking in the same direction about the matter of exchange-traded funds. One committee member made some contrasting views stating that Bitcoin and all other forms of digital assets don’t have an intrinsic value, which leads to awful price instability (fluctuation). But, Takeshi replied to these opposing views by making his supportive stance towards ETFs approval, as he believes it will prevent the value instability of Bitcoin and other digital assets as well, hence turning them into a more lucrative financial investment.

It seems the US SEC shares such an opinion, for they have been postponing ETF approval for a while now. Late last month, the financial watchdog once more delayed a VanEck crypto ETF approval, claiming that it requires extra time to enable it to gather other important information, opinions and concerns from the public concerning digital assets and its underlying technology: blockchain. The US SEC further set 14 more questions to be answered by the crypto community and any concerned party, in order to enable them make an outstanding verdict on the matter. Mostly, the questions focus on the security of investors and the public interest. The SEC will only make a decision on any ETF if all crucial demanded changes are fulfilled.

In fact, the exchange-traded funds approval can boost the blockchain and cryptocurrency market. It is obvious that the cryptocurrency ecosystem has a basket full of issues lacking enough adoption, popularity, value and dominance in the financial sector; unending hacking, hoky-poky actions, etc., and this brings worries in the minds of new investors since they fear dealing with a fresh class of asset and also fear making losses. Fortunately, ETF is this kind of a financial tool, which when approved, will greatly boost and attract a vast number of crypto and blockchain investors into the market, that has been used of fiat assets for spans of centuries.

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