Gold Miners Report Strong Earnings; Own Them In This ETF

A bevy of gold miners reported first-quarter earnings this week, and the results were nothing short of stellar. If you’re looking to ride the current gold rush, you may want to consider gaining exposure through gold-miner related exchange traded funds (ETFs).

Newmont Mining (NYSE: NEM), Goldcorp (NYSE: GG) and Barrick (NYSE: ABX) all reported earnings this week, and they didn’t disappoint:

• Newmont Mining’s profits soared in the first quarter, thanks to higher gold and copper prices, as well as increased production. [Why Gold Miner ETFs Are Striking While the Iron Is Hot.]
• Revenues at Goldcorp rose 20% from a year earlier, and gold production increased as well.
• Barrick notched record profits in the first quarter, doubling its income on increased production, as well as gold and copper sales. Gold production soared 19%  in the first quarter.

Don Dion for TheStreet recently noted that these three companies make up 38% of assets in Market Vectors Gold Miners (NYSEArca: GDX).

A few of the fundamentals supporting gold these days include:

• Inflation fears still hovers in the minds of many an investor and gold is considered an adequate way to hedge against that risk.
• Economic strength in emerging markets such as China and India means that consumers have more income to sate their gold demands.
• The recent financial problems in Europe that stem from Greece’s budget problems and the rest of the continent’s link to the mess as a result of the euro has also brought gold to new all-time highs against the currency. [Why Gold Miner ETFs Are Outperforming Gold.]

If you’re more risk-tolerant, you may want to consider a small-cap approach to gold miners through Market Vectors Junior Gold Miners (NYSEArca: GDXJ). The fund has high daily trading volumes, but it’s a little more volatile than GDX.

For more information on gold miners, visit our gold miners category.

Max Chen contributed to this article.