By SK Options Trading
Treflis
Gold prices have been taking a pounding of late with today’s session on the NYSE witnessing a close of $1277.80/oz, with poor man’s gold, silver, closing at $19.82. The gold Bugs index (HUI) also took it on the chin losing around 7.5%.
With this environment as a back cloth it is understandable that the juniors in this sector also had a torrid time with Market Vectors Junior Gold Miners ETF (GDXJ) losing 9.78% to close at $9.32. So it begs the question; is GDXJ now a buy?
As an investment vehicle this ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Junior Gold Miners Index. The attraction of this fund for investors is the ability in invest in a myriad of small to medium sized companies in the gold and/or silver mining space. The fortunes of this fund are in turn predicated on gold and silver prices maintaining price levels that are profitable to mine.