Gold Miner ETFs Riding High After Earnings | ETF Trends

Gold exchange traded fund (ETF) investors aren’t the only ones on the market benefiting from higher gold prices. It’s also translated into a satisfying earnings season for miners.

The second quarter was kind to gold miners:

  • According to Forbes, Goldcorp. (NYSE: GG) said that revenue climbed to $844 million in the second quarter as cash flow rose to $382 million.
  • Newmont Mining (NYSE: NEM) reported that sales improved 34%. [Are Gold Miner ETFs a Better Option?]
  • Euan Rocha for Reuters reports that the higher gold prices seen in past weeks has helped boost Canadian mining companies, as well. Results for Kinross Gold (NYSE: KGC) and Yamana Gold (NYSE: AUY) mirror rivaled those of North American gold miners that have also recorded huge profits this quarter, driven by the large year-over-year jump in the price of bullion.

Australia just held its largest meeting of miners, prospecters, financiers, brokers and contractors. In a sign of the times, the Diggers and Dealers conference attracted a record 2,300 attendees, International Business Times reports. Although the mining tax was a major topic of discussion, some other points about gold were brought up, as well:

  • Globally, 75 million ounces of gold are produced yearly. This is down from a peak reached in the 1980s.
  • The amount of gold discovered is down to about 100 million ounces, from a peak of more than 300 million ounces two decades ago.
  • In the 17 years before 2008, investment in gold exploration ranged between $2 billion and $4 billion; junior miners raked in 56% of the money.
  • Most of the gold discovered in the last 20 years has been in countries that are considered moderate to high risk when it comes to mining projects.

For more stories about gold miners, visit our gold miners category.

  • Market Vectors Gold Miners ETF (NYSEArca: GDX)
  • Market Vectors Junior Gold Miners ETF (NYSEArca: DXJ)
  • iShares Goldman Sachs Natural Resources Fund (NYSEArca: IGE): Barrick, Goldcorp, Newmont, Yamana and other gold miners are holdings.

Tisha Guerrero contributed to this category.

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.