Leveraged Gold Producers

I'm trying to formulate a leveraged trade to benefit from a rapid rise in gold, should that happen. We can argue about the merits of that thesis... But that's a waste of time, so please don't go there. Also not interested in crypto-babble. Thanks

Purpose of the thread is to explore the equity instruments available, that can deliver highest return by virtue of leverage from incremental (rapid and historically unusual) increases in the price of the commodity... Miners with highest earnings increase resulting from the ratios being just right.

Looking for any information in this regard.

 

If gold goes up it reflects more in the metal than on the miner. Use all leverage and splurge in GLD. Or use gold futures.

 

hummm. Looking for a bit more leverage then that

If gold rips hard, leveraged producers will rip even harder, and those (improbable) options will rip even harder

 

Producers have a head wind.

 

Check EQX KL KNTNF SKREF VITFF WDOFF...all quality junior or mid-tiers with leverage. Good luck!

 

Explorers which make a significant new discovery, but it's not a frequent thing which happens.

 

I like GDX best

 

Junior and mod cap gold miners always outperform Gold on breakouts. I like more active stocks like New Gold, Calibre Mining, OceanaGold. There are a bunch of others that are unclear if they'll wake up strongly ( eg Eldorado, Alamos, Equinox, B2Gold, Kinross ). Silver miners may move in tandem with even more pop ( eg Fortuna, Silvercrest, Endeavour Silver ).

 

I prefer to leverage the metal itself (2x or 3x gold ETF). Silver often acts as a leveraged play on gold.

PMs have disappointed many times over the past 10 years but maybe this time is different.