Buy Oil Producers, Mining Suppliers, Not the Commodities Says ETF Analyst

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Once again, it's the makers of tools and equipment to unearth and refine oil, gold and industrial metals that are posting the strongest gains.

During the California Gold Rush, it was the suppliers of the miners -- purveyors of pickaxes and shovels -- and not the hopeful prospectors, who really struck it rich.

Nowadays, growing global demand for oil and metals has created a new passel of prospectors. Many of these market miners are panning with exchange-traded funds that invest in the hard asset, such as StreetTracks Gold Shares (GLD), iShares COMEX Gold Trust (IAU) and United States Oil (USO).

Except returns for oil- and metals-linked funds are sorely lagging ETFs invested in shares of companies that produce and sell those products. Once again, it's the makers of tools and equipment to unearth and refine oil, gold and industrial metals that are posting the strongest gains.

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