Don't Overlook Gold Miner ETFs

Source: The Street, Don Dion (6/16/11)

"Beyond physical bullion, there are options gold-hungry investors should consider."

The Street, Don Dion

Beyond physical bullion, there are options gold-hungry investors may want to consider including gold miner-backed funds like the Market Vectors Gold Miners ETF and Market Vectors Junior Gold Miners ETF, both of which spread their assets across a wide collection of global gold producers.

There are a number of benefits to owning gold miners.

For one, the equity exposure gained through holding a miner-focused fund like GDX will be beneficial when the markets eventually get back on track. The companies underlying this fund are primarily dedicated to the production of gold and will therefore benefit as investors clamor for exposure to the resource. However, it is important to note that, like other market sectors, gold miners also do well during times of market optimism.

Secondly, although they have lagged against their physically-backed cousins throughout the metal's staggering 2011 run up, gold miners have a long history of outperforming bullion during periods in which gold has risen sharply.

As Barron's recently pointed out, the lagging performance of many top gold miners has left them primed for strength. A combination of rising profits, abnormally low P/E ratios, and strong demand bodes well for these firms' prospects going forward. In the event of a breakout, there is a good chance GDX could provide leveraged-like returns.

Gold Explorer Highlights 2020 Achievements and Outlook
Source: Streetwise Reports (01/29/2021)

Magna Gold Corp.'s CEO Arturo Bonillas issued a letter to shareholders outlining the firm's business and financial accomplishments in 2020 and its strategy and outlook for 2021.

Cabral Gold's channel samples at the JM target provide "further evidence that numerous high-grade veins occur within the Cuiú Cuiú district."

Explorer Completes Phase 2 Metallurgical Work for Palladium-Copper Project
Source: Streetwise Reports (01/28/2021)

Generation Mining intends to wrap up the feasibility study on Marathon this quarter.

Silver Firm Reports Q4/20 Processing, Production Numbers from Mexico Project
Source: Streetwise Reports (01/28/2021)

MAG Silver's joint venture project Juanicipio produced 230,000 ounces of silver during the quarter ended Dec. 31, 2020.

Explorer Reports High-Grade Gold-Silver Intercepts at BC Golden Triangle Property
Source: Streetwise Reports (01/27/2021)

Scottie Resources Corp. advises that the target remains open in most directions.

Golden Arrow Resources Out Exploring Again After COVID-19; Hits High-Grade Gold at Tierra Dorada in Paraguay
Source: The Critical Investor for Streetwise Reports (01/27/2021)

The Critical Investor explains why he believes "investors have an interesting opportunity to invest in a pretty derisked, undervalued and experienced explorer with three chances for success."

Junior Mining Sector 'the Best Value in the Space'
Source: Streetwise Reports (01/27/2021)

The StreetSmart Live! Broadcast on Jan. 26, 2021, focused on metals and why now is a good time for investors to be looking at them and the mining space. John Newell, independent analyst and portfolio manager, and John Feneck, mining sector expert and president of Feneck Consulting, addressed the status of the current metals market. CEOs of the three metals-focused companies comprising the Metallic Group of Companies—Group Ten Metals, Metallic Minerals and Granite Creek Copper—discussed their projects.

Shenanigans Abound: Gold, Silver and Cryptocurrency
Source: Michael Ballanger for Streetwise Reports (01/26/2021)

Sector expert Michael Ballanger explores the generational trends currently shaping investment markets, including the precious metals.

MMT Survey Helps Explorer Identify New Large Target at Ecuador Property
Source: Streetwise Reports (01/26/2021)

Aurania Resources reported that data from an ongoing Mobile MT Survey identified an extensive target at Tsenken at its Lost Cities - Cutucu Project in southeastern Ecuador.