HGU files up tricles downI bought HGU at 17 way back in 2017 :) I bought a bit more last week. Nothing big just enough keep interested. I really thought this would hit and stay/split at $50 once gold hit 2K in 2020. That’s certainly not the case. HGU barely reached 40. I realize gold miner profits/holdings don’t always correlate with gold price.
When gold goes up, this files as you would expect of an 2X/3X ETF. In 2020 it went from $6 to $40. The problem is when gold drops marginally like $75, HGU finds its way back to under $12. Gold miners are generally the reverse of normal stocks. Normal stocks trickle up slowly and drop/crash quickly. Gold miners do the opposite.
Lets say gold reaches 2300 next year. HGU may reach $40-50. Then it drops to 2200 and we see the same cycle and back to 15. Sell and buy HGD or just stay out and buy lower.