23.11 +0.02 (0.09%)
After hours: 7:57PM EDT
|Bid||0.00 x 1100|
|Ask||0.00 x 900|
|Day's Range||22.50 - 23.33|
|52 Week Range||21.25 - 44.03|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.90%|
As has been documented, gold prices have faltered over the past several months. An interesting element in that scenario is that gold miners ETFs, such as the VanEck Vectors Gold Miners ETF (NYSEArca: GDX ), the largest exchange traded fund dedicated to gold mining stocks, have performed less poorly than ETFs focusing on physical gold. GDX is comprised of global gold miners, with a notable tilt toward Canadian and U.S. mining companies.
On June 23, 2016, the world was caught by surprise when British citizens voted to leave the European Union (HEDJ) (VGK). Currency and equity markets were in turmoil as a result of the exit decision, while safe-haven assets including the US dollar, the Japanese yen, and gold surged. After almost two years, the uncertainty related to Brexit could again come in as a support for gold and other precious metals.
This has been especially evident in gold mining stocks, which have traded sideways through 2018. Gold as a commodity has remained within a $60 range while precious metal traders anticipate inflationary signals that have yet to materialize. The effect on miners is clear if one takes a look at the index tracked by the Direxion Daily Gold Miners Index Bull and Bear 3X Shares ETF (NYSE: NUGT) (NYSE: DUST), which has remained range-bound since February.
New Gold (NGD) stock has had one of the poorest showings YTD (year-to-date). Until June 14, it has fallen 34.7%, significantly underperforming its peers (GDXJ) (NUGT), including Eldorado Gold (EGO), IAMGOLD (IAG), Alamos Gold (AGI), and Randgold Resources (GOLD).
Gold and gold miners have been all over the place this year. Often, we think of gold as a safe haven and defensive play, and often it is. But sometimes it’s in its own cycle or just another asset for people to sell in times of trouble. This year, gold is playing its role as a safe haven and is up 3% during a flat and tumultuous market. But for some reason, the miners are acting more like other stocks—and, at some periods, even worse than the market. That behavior is relatively curious, especially given gold’s outperformance.
While gold miners have been out of favor for a long time, that might be about to change. Since the uncertainty in the market is increasing, gold prices are poised to rise. This rise should be followed by gold miners (GDX), which are essentially a leveraged play on gold prices.
The VanEck Vectors Gold Miners ETF (NYSEArca: GDXJ), the second-largest exchange traded fund tracking gold miners equities, is 3.4% over the past week and some market observers believe the small-cap miners ...
Newmont Mining (NEM) stock rose 2.4% in 1Q18 while Goldcorp (GG) stock rose 4.5%. Newmont Mining reported an earnings beat in 4Q17. The company’s production and unit costs were in line with its guidance.
In its first meeting under new chief Jerome Powell, the US Federal Reserve increased interest rates by a quarter of a point. Markets widely expected the rate hike. New Fed Chairman Jerome Powell believes the US economic outlook has strengthened in recent months.
Among the stocks we’ve discussed throughout this series, Tahoe Resources (TAHO) is trading at the lowest forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 4.7x. The stock is trading at a huge discount of 60% to its trailing-five-year average. Tahoe Resources’ stock price, as well as analysts’ corresponding estimates, took a severe dive after the Guatemalan government’s decision to suspend its Escobal mine license on July 5, 2017. Its valuation multiple has also fallen 27% since July.
The VanEck Vectors Gold Miners ETF (NYSEArca: GDX), the largest exchange traded fund dedicated to gold mining stocks, is essentially flat over the past month, but options traders have recently taken increased ...
Goldcorp’s (GG) gold (GLD) (NUGT) production fell 15% to 646,000 ounces YoY (year-over-year) in 4Q17. Goldcorp has guided for production of 2.5 million ounces in 2018 with a variance of plus or minus 5%, which is in line with its previous 2018 guidance as well as its guidance for 2017. In 4Q17, Barrick Gold (ABX) produced ~1.3 million ounces of gold, a fall of 11.8% YoY.
The VanEck Vectors Gold Miners ETF (NYSEArca: GDX), the largest exchange traded fund dedicated to gold mining stocks, is lower by 7% to start 2018, prompting some market observers to say gold miners stocks ...
The move to impose tariffs on steel and aluminum could provide support for gold prices as a safe-haven asset as uncertainty rises.
IAMGOLD’s (IAG) Westwood project had a pivotal year in 2017, as it resumed operating at the normal production level in 2Q17. Investors might recall that, during the early stages of the mine’s ramp-up, a seismic event occurred, which left part of the operation in a rehabilitative state for most of 2015. Westwood’s gold production increased 92% YoY (year-over-year) to 125,000 ounces.
Gold miners (GDX)(SGDM) face the problem of compensating for every ounce they take out of the ground. Newmont Mining (NEM) reported flat reserves at the end of 2017 compared to last year. Its reserves came in at 68.5 million ounces for 2017, unchanged from 2016 due to additions and revisions fully replacing the depletion.
Amid an uptick in equity market volatility, some traders are seeking refuge in a familiar place: gold. Market participants are also renewing their enthusiasm for some gold miners exchange traded funds ...
Goldcorp (GG) has one of the strongest project pipelines in the industry. At Penasquito, the Pyrite Leach Project (or PLP) is 62% complete and expected to start commissioning in 4Q18, which is three months ahead of schedule. This project is expected to add ~1 million ounces of gold and 44 million ounces of silver over the current life of the mine.
The VanEck Vectors Gold Miners ETF (NYSEArca: GDX), the largest exchange traded fund dedicated to gold mining stocks, is once again attracting investors. GDX is comprised of global gold miners, with a ...
Could Gold Catch a Bid if Equities Stay Weak in 2018? In Could Gold Be Set for a Big Move in 2018? we discussed these factors in detail. While a weaker US dollar supported gold prices in January 2018, the picture could change going forward, as the dollar has started strengthening on a brighter inflation outlook and a more hawkish Fed stance.