“One school of thought has it that gold miners are now the place to be, and the near term performance of the group does indicate some change in momentum. This kind of performance gathers investor attention quickly – especially in volatile markets – and ETF money flows are responding,” the strategist wrote in a note Wednesday.
“Bottom line: the move in assets out of gold ETFs and into gold miner fund is a recent phenomenon, to be sure, but the one month data does seem to show that capital is moving (with a lot more potentially behind it) and this is pushing the mining stocks higher.”
Market Vectors Gold Miners
Full disclosure: Tom Lydon’s clients own GDX.