Aggressive traders willing to bet on more declines for gold miners can consider the Direxion Daily Gold Miners Bear 3X Shares (NYSEArca: DUST) and the Direxion Daily Junior Gold Miners Index Bear 3X Shares (NYSEArca: JDST).
GDX is comprised of global gold miners, with a notable tilt toward Canadian and U.S. mining companies. Nevertheless, gold assets may have further room to fall if the U.S. dollar and real bond yields continue to rise.
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.
“The world’s third largest gold producer behind Newmont, AngloGold Ashanti (NYSE:AU) dropped another 4.4% in Monday, and the company’s ADRs worth $4.1 billion in New York has lost a whopping 20% in value over the past month. Johannesburg-based Anglogold reported an 8% decrease in annual production to 3.6m ounces in 2016. Production was impacted by safety-related stoppages at its South African mines and lower grades at the giant Kibali operation in the Congo its owns together with Randgold Resources,” according to Mining.com.
For more information on the gold market, visit our gold category.