1. Home
2. ETFs and Funds Analysis
3. ETF Analysis

Summary

• Direxion Daily Gold Miners Index Bull 2X Shares ETF (NUGT) earns a reiterated buy rating, supported by explosive returns and strong gold miner fundamentals.
• NUGT’s 2x leverage amplifies both upside and risk, with a 77% historical standard deviation and a technical setup targeting 10% further upside.
• Gold miners benefit from high gold prices, moderate labor costs, and low energy prices, yielding a 41% EPS growth rate and a 13.1x forward P/E.
• Seasonal strength favors gold miners through April, but prudent investors should consider small position sizing due to high implied volatility.

FatCamera/E+ via Getty Images

Gold is now more than 10 years removed from its cycle low back in December 2015. Since then, the yellow metal has gone up by about fourfold. Still, it feels like the rally only began in earnest a few

This article was written by

8.7K Followers

**Analyst’s Disclosure:**I/we have a beneficial long position in the shares of GDX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.