For investors who don’t want to deal with the tax implications of futures-backed gold exchange traded funds (ETFs) or those that hold the physical metal, gold miner funds may be an appealing option.
Almost 70 respected economists, academics, gold analysts and market commentators are of the opinion that gold is going to go to at least $2,500 per ounce before the top is reached, says ETF Daily News on iStock Analyst. Whether that’s true or not, gold miners still have a strong case. [Which Gold ETF is Right for You?]
There are some key indicators of why gold mining shares may go higher than the physical commodity in the investment world, says Hard Assets Investor on iStock Analyst.
- The top-performing gold miners are also among those least correlated to the stock market.
- It’s also worth noting that it takes so much to extract an ounce of gold from the ground – what’s after that is improved profit margins.
If the market continues to drag and the economies do not begin to heal, gold mining shares are a better bet and could be a more aggressive route. Meanwhile, gold continues to be an appealing asset for individual investors, institutions and the central banks of many of the world’s countries. Materials exchange traded funds that hold the stock of gold metals and miners are riding high as a result.
For more stories about gold miners, visit our gold miners category. According to the ETF Analyzer, there are two gold miner ETFs available right now, and in the last six months they’re up, though they’re down in the short-term:
- Market Vectors Gold Miners ETF (NYSEArca: GDX): up 10.9% in the last six months
- Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ): up 8.1% in the last six months
You can see what companies are in these funds by going to the ETF Resume page and clicking the tab you’re most interested in:
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.