Gold Investment: How to Profit with Gold ETFs – Gold as an Investment – Gold Bullion – Gold 2022

Gold prices are high right now and they are 
expected to stay high for the rest of 2022,   even 2023. One of the best ways 
to benefit from high gold prices   is to buy these specific stocks and, in this 
video, we will talk about exactly how to do   that. I want to keep this one short so if you're 
interested, stick around and let's get started. High gold prices are great 
and, in my previous video,   I talked about why I think gold prices will stay 
high or even go higher. Still, gold has a massive,   massive market cap of over $12 trillion dollars 
and it is hard as hell to move the price. So,   if you want to make a really good profit, gold 
is probably not the asset for you. Instead,   you can buy mining companies which specialise 
in gold, basically gold stocks. Why? Well,   those gold mining companies can afford to leverage 
themselves and benefit a lot more from rising gold   prices than you or me. Plus, a lot of these 
companies have their business models built   around gold prices of $1,200 to $1,400 and so on. 
Right now, we are expecting gold prices to average   $2,000 for the rest of 2022.

What that means 
is that those companies will get an incredibly   massive boost to their earnings at no cost to them 
at all. No change of business required! This means   increased stock buybacks, increased dividends 
and increased stock prices. Now, this is great,   but it doesn't help a lot if you are not familiar 
with the gold stocks currently on the market.   Luckily for us, there is a way to get around 
that. How? Simple. Just use an index fund. We have   exchange-traded funds like GDX which is the VanEck 
Gold Miners ETF and RING which is the iShares MSCI   Global Gold Miners ETF. If we compare their 
year-to-date performance to the price of gold,   we can see that they have outperformed gold 
by almost 200%! As of today, 25th of March,   gold has gone up by 8.4% year-to-date 
whereas the GDX ETF has gone up 22.9%! Now, it's important to know that the price of 
gold stocks is not perfectly correlated to the   actual price of gold, but there is a strong 
relationship.

The expected future price of   gold has a stronger correlation to gold stock 
performance, but like I said, we are currently   expecting high prices of gold in the next 12 to 24 
months so this is good news for gold stocks. Also,   gold stocks are more volatile than actual gold 
so they go up higher that gold in bull markets,   but they also drop lower than gold in bear 
markets. What you want to do is buy gold if you   think that the price is more likely to drop and 
gold stocks if you expect the price to go up.

But,   there is an even better way to take advantage of 
high gold prices and that is by using a leveraged   gold miners fund like NUGT which is the Direxion 
Daily Gold Miners Index Bull 2X Shares. Basically,   NUGT is a leveraged fund that tries to 
double the performance of ETFs like GDX.   Again, gold stocks are great in bull markets, 
bad in bearish markets. When you add leverage,   you double the effect. NUGT is amazing during 
bull markets, but it is also really, really   painful during bear markets so be extremely, 
extremely careful with that.

NUGT is best for   short-term trades where you see a good bullish 
potential and you should avoid staying in it for   the long term. I've personally made some really 
good gains with that ETF, but I've also taken   an extremely nasty hit when gold prices dropped 
by almost 5% in a single day during last summer. So, there you have it guys, this is how you 
can make the most of rising gold prices.   Gold stocks and leveraged gold ETFs are great 
tools if you know how to use them, but you need   to be very careful because they are a lot riskier 
than holding actual gold.

Make sure you also check   out my video on gold prices to know what to expect 
this year and also leave a like and a comment   down below if you enjoyed the video. If this is 
your first time here, make sure you subscribe   to join the newbie investors family! Thanks 
for watching and I'll talk to you again soon!.

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