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…

1 Comment

  1. goldguru

    gdx has been making higher highs and lows and recently bounced off the 50-day moving avg.


Leave a Comment

Your email address will not be published. Required fields are marked *

To prove you're a person (not a spam script), type the security word shown in the picture. Click on the picture to hear an audio file of the word.
Anti-spam image