From Morning Watchlist <[email protected]>
Subject The Gold Trade Isn’t Over
Date January 31, 2026 2:06 PM
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If gold’s next target is $7,000–$10,000, miners and explorers can
move fast. ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏
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NOW THERE ARE CALLS FOR $10,000 GOLD — HERE’S HOW TO TRADE IT

Gold is doing what it tends to do when uncertainty rises and
confidence in paper promises falls: it’s making new highs.

With spot prices recently around the low-to-mid $5,000s per ounce,
gold has become one of the market’s clearest “message
assets”—reflecting a mix of geopolitics, monetary policy
expectations, fiscal strain, and aggressive central bank accumulation.


And now, the targets are getting more ambitious.

For a while, the “big call” floating around markets was $5,000
gold. That milestone is no longer theoretical. What’s changed is
that some strategists are now arguing the next major waypoint could be
$7,000—and that a more extreme scenario could eventually put $10,000
on the board.

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WHY ANALYSTS ARE TALKING ABOUT $7,000 (AND EVEN $10,000)

Start with the $7,000 case.

SAMCO Securities has pointed to a familiar cocktail of drivers:
persistent geopolitical uncertainty, structurally higher fiscal
deficits, ongoing central bank demand, and a supportive real
interest-rate backdrop—factors it argues could support a move toward
the $7,000 area over time.

Then there’s the more aggressive $10,000 discussion.

An Investing.com report citing SBG Securities frames the upside case
around the outlook for interest-rate cuts, monetary policy
expectations, geopolitics, and the U.S. dollar. The key point: if the
market ends up getting more easing than currently priced, gold could
respond sharply—especially with demand already elevated.

That “rates narrative” matters because gold often behaves less
like a commodity and more like an alternative currency. When real
yields fall (or the market expects them to fall), the opportunity cost
of holding gold declines. Combine that with a weaker dollar
environment and increased risk aversion, and gold can start to
trend—sometimes violently.

-------------------------

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-------------------------

THE QUIET FORCE BEHIND THE RALLY: CENTRAL BANK BUYING

While retail and institutional flows come and go, central bank demand
has become one of the most important structural supports in this
cycle.

Many countries have been diversifying reserves away from the U.S.
dollar, and gold is a politically neutral reserve asset with no
counterparty risk. Even modest shifts in reserve strategy can create
persistent multi-quarter demand—especially when several central
banks move in the same direction.

That’s a major reason gold can grind higher even when equity markets
are strong: it’s increasingly being accumulated for strategic, not
speculative, reasons.

HOW TO TRADE GOLD’S UPSIDE WITHOUT TAKING “SINGLE STOCK” RISK

You can always trade physical bullion, futures, or individual miners.
But for most investors—especially those reading this as an email
newsletter and looking for practical positioning—the simplest
approach is to use ETFs.

Below are three “tiers” of gold leverage through ETFs, from more
established senior miners to higher-volatility juniors and explorers.

ETF: VANECK GOLD MINERS ETF (SYM: GDX)
THE LARGE-CAP, LIQUID “CORE” OPTION

If you want gold exposure with liquidity and diversification, the
VanEck Gold Miners ETF (GDX) is one of the standard tools.

GDX seeks to track major global gold mining companies and carries an
expense ratio of about 0.51%.

Its holdings skew toward the industry’s bellwethers—companies that
tend to have producing assets, established cash-flow profiles, and (in
many cases) the ability to return capital via dividends or buybacks
when margins expand. On the VanEck holdings list you’ll see major
names like Agnico Eagle, Newmont, and Barrick, along with
royalty/streaming exposure such as Franco-Nevada and Wheaton Precious
Metals.

WHY MINERS CAN OUTPERFORM GOLD: when gold rises, the miner’s revenue
line improves immediately, while many operating costs (labor, energy
contracts, sustaining capex plans) don’t rise at the same rate. That
widens margins and can accelerate free cash flow—creating
“operating leverage” to the commodity.

WHAT TO WATCH: miners are still equities. They can sell off with the
broader market during sharp risk-off events, even when gold is holding
up. You also have company-level risks: operations, jurisdictions, cost
inflation, and project execution.

-------------------------

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-------------------------

ETF: SPROTT JUNIOR GOLD MINERS ETF (SYM: SGDJ)
HIGHER TORQUE FOR THE NEXT LEG

If GDX is the “senior miner” play, SGDJ moves down the food chain
to smaller companies—often with more upside torque when gold is
strong, and more downside volatility when sentiment turns.

The Sprott Junior Gold Miners ETF (SGDJ) tracks a rules-based junior
gold miners index and has a net expense ratio of 0.50%. The
methodology is designed to emphasize smaller-cap gold companies
(including producers and explorers) and is reconstituted periodically.


WHY JUNIORS CAN MOVE MORE: juniors often have fewer producing assets,
more concentrated operational exposure, and valuations that are more
sensitive to sentiment and funding conditions. In strong gold tapes,
that can be a feature—because capital starts chasing the “next”
mine build, the “next” discovery, and the “next” takeover
candidate.

THE TRADE-OFF: juniors can underperform badly when gold chops
sideways, when financing tightens, or when equity markets are
volatile.

ETF: GLOBAL X GOLD EXPLORERS ETF (SYM: GOEX)
THE EXPLORATION/DEVELOPMENT OPTION

If you want exposure even earlier in the pipeline—companies
exploring for deposits or developing projects—GOEX is designed for
that.

GOEX tracks a gold explorers and developers index, has a total expense
ratio listed at 0.65%, and distributes semi-annually.

Its holdings include a broad basket of exploration and
development-linked names (and related smaller miners), with positions
such as Hecla Mining, Eldorado Gold, New Gold, Equinox Gold, Alamos
Gold, Coeur Mining, and Lundin Gold, among others.

WHY EXPLORERS CAN SURGE: in strong bull markets for gold, discoveries
and de-risked development projects can be re-rated
quickly—especially when majors need to replace reserves and expand
their production pipeline.

THE RISK: this is typically the highest-volatility tier. Exploration
and development outcomes are uncertain, timelines are long, and
funding conditions matter a great deal.

A SENSIBLE WAY TO THINK ABOUT POSITIONING

If your goal is to participate in gold upside while controlling risk,
consider this framework:

*
CORE EXPOSURE: GDX as a liquid “big miners” basket

*
TORQUE SLEEVE: SGDJ if you want more beta to gold

*
SPECULATIVE SLEEVE: GOEX for the highest-volatility exploration angle

You don’t need all three. But separating them by “risk tier” can
help you size appropriately and avoid overconcentrating in the most
volatile part of the ecosystem.

-------------------------

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-------------------------

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