While the U.S. dollar might not like the prospect of rising inflation, gold miner investors are eyeing opportunities should consumer prices rise. One such fund is the VanEck Vectors Gold Miners ETF (GDX).

GDX seeks to replicate as closely as possible the price and yield performance of the NYSE® Arca Gold Miners Index®. The index is a modified market-capitalization weighted index primarily comprised of publicly traded companies involved in the mining for gold and silver.

GDX gives investors:

  1. The Nation’s First Gold Miners ETF: An industry driven by demand across regions and segments of the market.
  2. A Pure Play with Global Scope: Companies must derive at least 50% of total revenues from gold mining and related activities to be added to the Index.
  3. Convenient Customization: Customize overall commodity exposure with targeted allocation to gold mining companies.

Data from the U.S. Labor Department on prices showed an increase last month.

“In a delayed reaction, the gold market is seeing renewed bullish momentum as consumer price pressures picked up in March,” a Kitco News report said. “Tuesday, the U.S. Labor Department said its U.S. Consumer Price Index rose 0.6% in March, after a 0.4% rise in February. The data was slightly strong than expected. Consensus forecasts were expecting to see a 0.5% rise.”

“The March 1-month increase was the largest rise since a 0.6-percent increase in August 2012,” the report added.

GDX Chart

A Smaller Version with Big Growth Potential

Future-focused investors can also consider the VanEck Vectors Junior Gold Miners ETF (GDXJ). GDXJ seeks to replicate as closely as possible the price and yield performance of the MVIS® Global Junior Gold Miners Index.

The index includes companies that generate at least 50% of their revenues from gold and/or silver mining/royalties/streaming or have mining projects with the potential to generate at least 50% of their revenues from gold and/or silver when developed. The asset includes smaller exploratory or early development phase companies that are responsible for many gold reserve discoveries worldwide.

GDXJ Chart

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