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Investors flock to supercharged gold bet that's returned 180%

Commodities

Investors flock to supercharged gold bet that's returned 180%

Bloomberg Published on Fri, Feb 24, 2017 / 7:38 AM GMT+8

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LONDON (Feb 24): Gold doesn’t offer yield. Junior miners may, and a leveraged exchange-traded fund tracking them has investors flocking to it.

As the Direxion Daily Junior Gold Miners Index Bull 3x Shares almost tripled in the past two months, the number of shares changing hands has surged nearly fourfold this year. That’s even as trading has dropped for an ETF tracking larger mining peers and for the SPDR Gold Shares, the largest bullion-backed fund. The boost in volume has also led to a jump in bullish options on the leveraged security, with more than two calls for each put.