Historically, when miners have lagged the price of gold for an extended time period, they do give investors a cheap way to gain exposure to gold. Plus, the potential to outperform becomes greater, reports Bryan. Gold miners are looking attractive in price in comparison to gold bars, and value focused investors are starting to surface. Plus, as more of the larger mining companies become heavy on cash due to the run-up in gold prices, gold miners will raise their dividends and should become more attractive to potential investors.
Other miner plays:
- Direxion Daily Gold Miners Bull 3x Shares ETF (NYSEArca: NUGT) Plays the NYSE Arca Gold Miners Index and magnifies the movement times three.
- Direxion Daily Gold Miners Bear 3x Shares ETF (NYSEArca: DUST) Plays the NYSE Arca Gold Miners Index and seeks daily investment results of 3 times the opposite performance.
Market Vectors Gold Miners
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon’s clients own GLD.