The metals market has become very difficult to trade lately as they are still stuck in a triangular pattern, alternating between short upswings and downswings. Only a few people such as sharp day traders are making money in the sector right now, everyone else is just getting whipsawed especially in the miners. In the short term there may be a retrace in gold as the USD is massively oversold now and at a key support zone. A bounce here in the USD is likely to be a dead cat in my opinion.
It's a very frustrating and difficult market right now but if you are still keen on investing in metals the best ways to do so in my opinion are:
1. Buy Physical Gold/Silver
On dips continue to accumulate physical gold and silver (coins/bars)
2. Buy GDX/GDXJ or select mining shares
Invest in shares at key support levels - GDX, GDXJ, NGD, AUY, NEM, AEM,
ABX, GOLD, RGLD, IAG, KGC and FNV
3. Sell Put Options
For the underlying shares above you could sell put options to get a
better cost average than buying outright shares (Cash secured puts).
Unless you are an experienced trader, stay away from buying Leveraged ETF's or Options. The constant whipsaw negatively affects both leveraged instruments & options as they suffer from decay. Your best bet to profit in the mining shares going forward is to accumulate shares on dips, BUY & HOLD.
Here are some other miners that have my interest:
Of those I like First Majestic the most. For silver also checkout Fortuna Silver Mines (FSM), Wheaton Precious Metals (WPM), Endeavour Silver (EXK)and SILJ
Definitely the least risky! Im a fan of EXK and FSM! Will check out SILJ and WPM
Frustrating and difficult to say the least. Lets hope for a turnaround soon. Definitely a good time to pick up some precious metals, especially silver. I like American Silver Eagles myself.