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Gold is Hot: Should Investors Be Buying?

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  • (0:30) - The Gold Rally Continues: Is It Time To Invest?
  • (6:20) - Bullish Or Bearish: The Future For Gold Prices
  • (15:40) - Why Have Gold Prices Soared Lately?
  • (25:30) - Leverage Gold ETNs
  • (31:00) - Episode Roundup: BTG, RGLD, AU, GOLD, GLD, UGLD, NUGT

Welcome to Episode #192 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is joined by Kevin Cook, Zacks Senior Strategist and the editor of the TAZR newsletter, to talk about gold.

It’s hot (again).

Gold has hit new 6-year highs in 2019 and the gold stocks are soaring.

The gold miners now rank in the top 4% of Zacks Rank Industries as the earnings estimates are on the rise.

Is this like the recent cryptocurrency manias or does gold have a legitimate place in your portfolio?

Gold Stocks Soar

Gold miners AngloGold Ashanti Ltd. (AU - Free Report) and Barrick Gold Corp. (GOLD - Free Report) are up 84% and 45%, respectively, year-to-date.

Metal streaming and royalty company Royal Gold (RGLD - Free Report) has soared 60%. But it’s not cheap. It now trades at 52x forward earnings.

Are ETFs the Way to Invest?

In 2004, State Street launched the SPDR Gold ETF (GLD - Free Report) and it has been the gold standard, literally, for those wanting to invest in the physical metal.

But there are also leveraged ETFs such as the Direxion 3x Gold Miners ETF (NUGT - Free Report) which is up 147% year-to-date thanks to the bullish mining stocks.

But NUGT isn’t meant to be held by long-term investors. It’s designed for single-day traders.

What else should you know about investing in gold and the mining stocks?

Listen to this week’s podcast to find out.

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