If one was to have a bearish outlook on gold for the next several years what would be the best stock/stocks to short. I know the GLD is an option but what companies are poised to fall the most if Gold starts a downward cycle? Any assistance is appreciated, thanks.
If you don't want to follow stocks then buy DZZ, double short gold. Trading gold is tricky so watch closely.
I saw this as an option but I am trying to stay away from any leveraged ETF's that are going to decay over time. Ultimately I am looking to buy long term puts on a gold stock that is riding high with all the gold hype. Jan 2012 puts on Yamana Gold (AUY) are trading cheap imo. I wanted to find other stocks that will fall when/if the Comex Gold contract starts to fall. Any other suggestions on a stock that trades with the gold futures price.
Why bother with all these lame ETFs when you can just short GC or the associated mini? Much better all around.
Wrong question! If Gold crashes as per your assumption (agreed) and you short some awesome stock, even if you're right, WILL YOU GET PAID in an atmosphere of system wide defaults and bankruptcies? So I suggest you go LONG gold's mortal enemy, but my best friend, the US Dollar in hard cash or cash equivalents aka 3-mo. T-bills. Of course you could also go short the USA (same thing as LONG the $) for the specific Lalaland reason outlined below .... The Opera is the only place where a guy gets stabbed and instead of bleeding, he sings.