If inflation continues to be a problem, the price of gold should move higher. And if it does, shares of the VanEck Gold Miners ETF (NYSE: GDX) could skyrocket.
Investors already know that gold is a very interesting market when the tide gets tough. As they turn to derivatives such as futures and CFDs, buying shares of companies in the sector is an option worth weighing.
In times of recession or economic crisis, investors tend to take money out of the stock market and take refuge in safe-haven assets such as the precious metal.
Ukraine Crisis Boosts Gold Miners
A few days ago, we posted Russian journalist Anatoly Karlin's assessment that there was an 85% chance of a Russian invasion of Ukraine.
Each day, Benzinga takes a look back at a notable market-related moment that happened on this date.
What Happened? On Jan. 24, 1848, prospector James W. Marshall struck gold in Coloma, California and the great California Gold Rush began.
On CNBC's "Fast Money Halftime Report," Pete Najarian said traders bought 3,400 contracts of the January $33 calls in Occidental Petroleum Corporation (NYSE: OXY) on Tuesday.
Carter Worth of Cornerstone Macro spoke on CNBC's "Options Action" about gold. He said the precious metal bounced off three times from its support at $1,677, forming a triple bottom pattern.