The Market Vectors Gold Miners ETF (NYSEArca: GDX) is down 34.4% year-to-date. However, precious metal miners have been surging, with GDX up 17% over the past week and 25.3% higher over the past month.
Currently, with gold prices at $1,370, gold mining operations is barely eking out profitability.
“The industry is not sustainable at $1,230 an ounce,” Nick Holland, the CEO of Gold Fields Ltd., said in the article. “We’re going to need at least $1,500 an ounce to sustain this industry in any reasonable form.”
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Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own GLD.