“Gold miners are still not hedging their future production despite the recent price-drop to new 4.5-year lows, says the latest expert analysis, as zero interest rates and falling energy prices are deterring forward sales to lock in current prices,” reports Bullion Vault.
Miners are also benefiting from lower oil prices. Barrick Gold (NYSE: ABX), the world’s largest gold miner and the second-largest holding in GDX at 7.5% of the ETF’s weight, could save up to $25 per ounce of gold produced thanks to lower diesel prices, according to Bullion Vault.
Market Vectors Gold Miners ETF
Tom Lydon’s clients own shares of GLD.