I Still Like Gold And The Junior Gold Mining ETF, GDXJ

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Ray Dalio is the founder, co-Chief Investment Officer and co-Chairman of Bridgewater Associates, which is a global macro investment firm and is the world’s largest hedge fund. Ray Dalio Bloomberg is the world's 58th wealthiest person, worth an estimated $19 billion. Ray Dalio accumulated his wealth because he thought differently about the Markets.

While at Bridgewater Ray invented several investment strategies including: Risk Parity, Currency overlay and Portable alpha. However, the success at Bridgewater was due to Pure Alpha, which allowed Bridgewater to dabble in almost any asset class it desired, with the goal of producing a return that was uncorrelated to other markets and All Weather (commonly referred to as risk parity) which meant to be balanced across risk exposures.

Gold prices, which briefly topped $1,600 last week, could rally to $2,000 an ounce amid heightened political risks, Bridgewater’s co-chief investment officer Greg Jensen told the Financial Times Wednesday.

The manager from the world’s biggest hedge fund cited increased income inequality in the U.S. and rising tensions with China and Iran as uncertainties ahead that will prompt more safe-haven buying. Bridgewater manages $160 billion in assets, more than any other hedge fund.

Earlier last year, founder of Bridgewater Ray Dalio advocated putting money into gold as he saw a “paradigm shift” in investing due to global central banks’ expected moves to an easier monetary policy.

Source

According to Bridgewater Associates, Greg Jensen he thinks Gold could spike 30% to a record high of over $2,000 an ounce as central banks allow inflation and political fears mount.

I personally see gold rising in 2020 and a derivative, higher ROI play might be to buy the smaller cap gold mining stocks rather than either the metal itself or the larger miners.

The easiest way to do that is to buy the VanEck Vectors Junior Gold Miners exchange-traded fund, which tracks a basket of smaller, so-called junior gold mining firms.

In general, the mining stocks do better than gold when the price of the metal rallies. But the smaller mining firms should outperform the larger ones, as long as the gold continues to rise.

Smaller cap junior miners have lower liquidity than do their larger peers which means that it takes fewer buyers to move the share prices either higher. Thus, the chart suggest price will move to the $50 level, with a secondary target at the monthly demand at $65.

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.


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I tend to break Gold Miners up into 3 types. Producers, Developers and Explorers. The Juniors are often the Developers and Explorers and they can be quite risky. If you want a solid leveraged play on Gold then the Producers are what you want. Those larger Blue Chip type miners where you're trading the delta between their ASIC and the gold price.

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Excellent point...Barrick Gold, Newmont Mining are the bell weathers.


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