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 (NYSEMKT: GLD ) and Market Vector Gold Miners (NYSEMKT: GDX ) .
In the video below, Fool.com 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.
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