The stock market has hit a pocket of volatility. That’s normal for this time of year. But added economic uncertainty, such as the implementation of tariffs, are creating some wilder swings.
Investors looking for steadier returns may find it with a different asset, gold. The metal has been trending higher so far this year. And its pullbacks have been more mild than high-flying tech stocks. Many see the metal continuing higher, and likely breaking $3,000 per ounce in the months ahead.
Investors have several ways to play gold’s trend higher. They can buy the physical metal itself, or an ETF that owns gold and tracks the price higher. It could also be time for investors to look at gold mining stocks.
Gold miners underperformed in 2024, even as gold rose by 24%. That was partly due to higher costs, which weighed on profitability. And on prior sales agreements that kept a lid on the sale price of gold.
Those are now adjusting higher, and gold could be set for a run higher.
Action to take: Investors may like the VanEck Gold Miners ETF (GDX) from here. The ETF holds positions in the largest gold miners, and is best positioned for a continued rally higher in the metal.
At current prices, the fund also pays a 1% dividend.
For traders, the June $45 calls, last trading for about $1.29, could see mid-double-digit returns from a continued trend higher in gold and mining stocks.
Disclosure: The author of this article has no position in the company mentioned here, but may further trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.