Pairs Trade: Profiting From a Structural Shift in Gold

Before you go, we thought you'd like these...
Before you go close icon

The recent rally in the price of gold seems to be characterized by a structural shift toward physical gold. An offshoot of this shift is that gold miners may finally be able to reverse their underperformance relative to the commodity. As such, there is the potential to build a successful pairs trade between the SPDR Gold Trust and Market Vector Gold Miners .

In the video below, contributor Doug Ehrman discusses the advantages, risks, and mechanics of building this type of pairs trade in order to capitalize on the potential structural changes taking place in the gold market.

Looking for more commodities-based ideas? Download the free report, "The Tiny Gold Stock Digging Up Massive Profits." The Motley Fool's analysts have uncovered a little-known gold miner they believe is poised for greatness; find out which company it is and why its future looks bright -- for free!

The article Pairs Trade: Profiting From a Structural Shift in Gold originally appeared on

Motley Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading