With the popularity of the gold exchange traded funds, Van Eck Associates Corp.’s Market Vectors Trust has proposed an ETF which will follow gold mining stocks. If approved by regulators, the ETF would track the AMEX Gold Miners Index (GDM). Mining stock tends to be more volatile than metal and the companies can have high operating costs, such as insurance and transportation.
There are currently two ETFs which track the gold bullion, iShares Comex Gold Trust (IAU) and streetTracks Gold Shares (GLD).
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.