Gold Miners ETF
I have been watching the Gold Miners ETF (GDX, ER 0.55%) with interest since it started trading a few weeks ago. It appears to track fairly closely with the Vanguard Precious Metals and Mining fund (VGPMX, ER 0.4%) and has a respectable trading volume.
I think this would be a good substitute fund in a taxable account for the VGPMX fund in my tax-deferred account. It could also be used for tax harvesting purposes — if there is another huge run-up in precious metal equity, I would sell off some of my VGPMX allocation in my tax-deferred account and purchase the equivalent amount of GDX in my taxable account. Later, if/when this sector corrects, I would then be able to sell off GDX at a loss, harvesting a tax benefit, and at the same time purchase back VGPMX in the tax-deferred account.
Hmm, sounds like a plan…
Stumble it!
August 22nd, 2006 at 12:05 am
gdx has been making higher highs and lows and recently bounced off the 50-day moving avg.
http://goldstockpicks.blogspot.com/2006/08/are-gold-stocks-ready-for-takeoff-try.html#links