Gold dropping by more than $60 an ounce to under $1,500 at one point Friday dominated the headlines but miner ETFs continue to fall faster and harder than bullion prices.
Market Vectors Junior Gold Miners (NYSEArca: GDXJ) was the worst-performing unleveraged ETF this week with a loss of 8% in afternoon trading Friday. Its large-cap sibling, Market Vectors Gold Miners (NYSEArca: GDX), shed 7%.
“Few gold miners have been spared,” writes Nathan Vardi at Forbes. “Shares of big mining companies like Newmont Mining and Barrick Gold, down 17% and 30% respectively in 2013, are getting hit hard as the market takes a less sympathetic view of any operational hurdles they are facing. Barrick’s shares fell another 7% in Friday morning trading.”
GDX has more than doubled the loss of bullion-backed SPDR Gold Shares (NYSEArca: GLD) the past six months. The gold miner ETF is off 38% during the period while GLD is down about 15%. [Gold ETF Lowest Since 2011 as Key Support May Crumble]
GLD was on track for a weekly decline of 5% as trading volume surged during Friday’s sell-off.