tyrannicide_prime
Oct 3, 4:05 PM
$GDXY $GDX $GLD For the kids who want to understand: GDXY, GDXY, and GLD are obviously not the same investment. GLD tracks physical gold; GDXY tracks minder; GDXY owns exposure to gold miners through GDX and sells spreads against that exposure to generate a (very) high level of income. But look at the charts: the broad mountains and valleys still tend to rhyme. When gold rises, miners generally benefit; when gold falls, they generally weaken. GDXY participates in that SAME basic cycle, just with some upside deliberately sold away in exchange for distributions. That also means gold being down—and GDXY being down with it—doesn’t automatically make GDXY a bad investment. That is partly what you should expect from the underlying exposure. The real question is whether GDXY is delivering the income YOU BOUGHT IT FOR while retaining meaningful participation when the gold/miner cycle moves higher. When gold goes back up, this will go with it. 💰
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