Even though gold prices pulled back today, gold miners should still reap the rewards of bigger profit margins as long as the price remains at its elevated levels. And there lies one of the benefits of gold miner exchange traded funds (ETFs).
Gold for August delivery settled down $15.70 to $1,229.90 an ounce at the Comex division of the New York Mercantile Exchange, says Alix Steel for The Street. [The Potential Impact of Australia’s Mining Tax.]
Investors are taking advantage of the profit window available in gold miner stocks and ETFs, sending them up about 2% in the last week. While gold prices may be volatile from day-to-day, gold mining stocks may provide a little more stability, since whether gold is $1,200 an ounce or $1,100 an ounce, miners are still making a decent profit. [5 Things to Consider Before Investing in ETFs.]
For more stories about gold miners, visit our gold miners category.
- Market Vectors Gold Miners (NYSEArca: GDX)
- Market Vectors Junior Gold Miners (NYSEArca: GDXJ)
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.