One potential solution is for miners to pay out a dividend to shareholders. Hinchcliffe suggested that miners should up their payouts, specifically a 5%-8% range. He said that dividends are “the best defense against the ETF.” [Capitulation Time for Gold Miner ETFs?]
Market Vectors Gold Miners
Tisha Guerrero contributed to this article.
(Update) — Full disclosure: Tom Lydon’s clients own GLD.