ETF Expert

Years ago, at least once a day, a member of the mainstream media called me for an ETF comment. It may have been a writer for Investor’s Business Daily, the Wall Street Journal, Smart Money or BusinessWeek.

How quickly the world keeps changing. Now the requests come through places like Linked In, Facebook and a variety of dedicated inboxes at sites like Seeking Alpha. Some folks even resort to asking a series of questions in the Comments Section of my site ETFexpert.com.

There’s nothing inherently bad about the way work gets done. However, it has become far more impersonal… and that’s something I find a bit disconcerting.

Nevertheless, I responded to all 3 ”I’ve-got-a-deadline” journalists this past weekend. And I discovered that… in spite of the “blackberry-to-iPhone” instantaneous discourse… business writers are still behind the curve.

For example, as recent as the August correction, nobody seemed curious about gold mining. I addressed the potential for a unique opportunity in the sub-sector due to both the increases in precious metal pricing as well as the exceptional earnings reports by the miners. And yet, I received zero inquiries about the viability of Market Vectors Gold Miners (GDX).

Now that GDX is in the top 10 percentile rank of all exchange-traded investments…

now that gold is looking to capture $1400 per ounce…

now that Market Vectors Gold Miners (GDX) has surged 17% since I highlighted the discrepancy on August 11… media professionals wish to know what I think of the mining segment.

I’ll save you from any suspense here… I said it’d be preferable to wait for a significant pullback. Perhaps a good entry point would be at its 50-day support, as long as the price of GDX remains above its long-term, 200-day trendline. Otherwise, an investor is merely chasing performance long after there’s been a substantial move higher.

Keep mind, there’s a safer path than shares of the stock prices themselves; specifically, you can usually buy the underlying commodity with less volatility. SPDR Gold Trust (GLD) is typically less volatile than Market Vectors Gold Miners (GDX). iPath Copper (JJC) is typically less volatile than Global X Copper Miners (COPX).

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