Junior Gold Mining ETFs Like VanEck’s GDXJ Just Made new 52-Week Highs
Gold stocks and the price of gold made a rebound on Friday. Just before the weekend, gold bounced from a previous close of $1,796.70 to highs of $1,813.90 on July 17th. The move comes as growing concern surrounding the coronavirus could lead to another round of shut-downs. Earlier this month there were discussions of reopening schools.
[Read More] Is It Time To Get Bullish On Barrick Gold Stock?
While this is still in the news cycle, there are cities flat out saying they aren’t going to open immediately in the fall. Furthermore, considering that most schools start heading back in August, record cases are making districts think twice. On top of that, declining bond yields have historically been positive for gold. What’s more is that even with stocks climbing back, there’s a record-buying surge of gold exchange-traded funds.
This, according to analysts, is far surpassing that seen when the metal hit a record $1,900+ an ounce in 2012. Bullion has been bouncing around $1,800 in recent weeks, up from $1,523 at the end of 2019. Meanwhile, we’re seeing gold ETFs not just wade, but move even higher.
“There are lots of ways to say it, but we believe gold’s current price level is still all about uncertainty”RBC Capital Markets commodity analyst Christopher Louney
In this light, it would appear the gold trade is alive and well. Also, considering the fact that some still believe in negative rates, gold’s store of value shines. On top of this, there’s a discussion beginning on what happens after all of this record QE? Will we see inflation and how will that change the landscape for investors. During the longest bull run in history, low rates have helped. But all along, gold’s price is steadily climbing.
Gold Stock ETFs Shine
Major gold ETFs like VanEck’s Mining and Junior Mining funds are heading higher at the end of the week. Its GDX reached a high of $39.29 just 15 cents shy of the $39.44 52-week high. Furthermore, the junior mining GDXJ actually made fresh 52-week highs on Friday.
The ETF hit $55 for the first time since April of 2013. While prices didn’t make new all-time highs on Friday, Graniteshares Gold Trust ETF came within 6 cents of that after reaching $18.03 during the morning session.
What Do These Gold ETFS Track?
It’s important to understand where certain gold ETFs fall in the grand scheme of things. With funds looking to gain exposure to this segment, this is one of the easier ways to do that. Almost $40 billion flowed into gold-backed exchange-traded funds in the first half of the year.
What Is The GDX ETF?
VanEck Vectors® Gold Miners ETF (GDX) “seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Gold Miners Index (GDMNTR), which is intended to track the overall performance of companies involved in the gold mining industry.”
Top Holdings Of GDX
|Name||Symbol||% of Net Assets |
|Barrick Gold Corp||GOLD||13.21|
|Wheaton Precious Metals Corp||WPM||5.45|
What Is The GDXJ ETF?
VanEck Vectors® Junior Gold Miners ETF (GDXJ) “seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® Global Junior Gold Miners Index (MVGDXJTR), which is intended to track the overall performance of small-capitalization companies that are involved primarily in the mining for gold and/or silver.”
Top Holdings Of GDXJ
|Name||Symbol||% of Net Assets |
|Kinross Gold Corp||KGC||6.30|
|Gold Fields Ltd||GFI||5.84|
|Pan American Silver||PAAS||5.35|
|Northern Star Resources||NESRF – US|
What Is The BAR ETF?
The GraniteShares Gold Trust “is designed to seek the performance of the price of gold, less trust expenses. It is among the lowest-cost, physically-backed gold ETFs on the market.” In short, BAR holds physical bullion. Prices will reflect the current spot market values.
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