Additionally, there is at least one positive fundamental catalyst that potentially bodes well for gold miners ETFs going forward: Peak production of gold has likely come and gone, perhaps indicating that supply will dwindle, thereby boosting bullion prices.
While gold miner stocks and sector-related exchange traded funds look cheap after underperforming broader equities for years, some caution investors against betting too heavily on this area of the market as the sector rallies on strengthening bullion prices.
“The wild card remains the uncertainty over the timing of the Federal Reserve’s next rate hike. However, given that it seems inevitable and gold still trades near 52-week highs perhaps the market has already factored that in,” according to Barron’s.
For more information on the gold bullion market, visit our gold category.
VanEck Vectors Gold Miners ETF