Even before the steep correction in gold and silver exchange traded funds this week, ETFs for miner stocks were trailing precious-metals prices.
When we see commodity prices shoot higher, we naturally expect commodity-producer ETFs to reap the benefits. However, as precious metals prices touch upon record highs, gold and silver miner ETFs continue to lag behind in performance.
Share prices of mining companies have been overshadowed by the prices of actual precious metals, reports Allen Sykora for Kitco.
Analysts and fund managers believe the stocks of the mining firms have underperformed because most investors would rather hold the actual metal itself and rising costs for mining companies are limiting profits despite higher prices for the precious metals.