Gold Miners ETF

ETF means exchange traded funds. These are mutual funds that are traded on the stock exchange. Gold miners ETF are traded in two main categories on the stock market. These categories are known as the GDX and the GDXJ. In order for investors to understand the gold miners ETF and how they work, they must first get familiarized with both GDX and GDXJ. GDX is associated with large-cap trading even though they overlap the GDXJ. The GDXJ, also known as the junior GDX, is associated with small-cap trading. Gold miners have shown a substantial amount of growth over the past 10 years. As the economy suffers stocks in commodities are on the rise. With the rising tensions in the Middle East and the falling dollar, gold, silver and oil are expected to rise sharply. Many new investors have entered into the scene of precious metals and they are buying up gold like there is no tomorrow. However, not only do investors buy physical gold, they also buy stocks in gold. The recent activity on the stock market has shown even more unexpected rises within the gold miners ETF category.

There are five main gold miners ETF funds to keep an eye on. These five are showing substantial amounts of growth that are directly affected by supply and demand. More and more people are dumping their dollars into gold. The Goldcorp Inc. is displaying increasing investors. Since the beginning of 2010, Goldcorp Inc. has grown an impressive 17%. Newmont Mining has shown a 22% increase in share price since the beginning of 2010. Eldorado Gold Corporation has shown a share price increase of 20% since the beginning of 2010. One of the most impressive advancement in share price within the sector of gold miners exchange traded funds, is a company called New Gold Inc.

New Gold Inc. has shown a huge increase in share price of 160% since the beginning 2010. The fifth most impressive gold ETF is the Great Basin Gold. Since January, 2010, their share price has jumped 60%. These are all signs of how well these markets are doing during the current down in the economy. Smart investors and normal everyday traders should know by now the importance of investing in physical gold and gold stocks. The precious metals market may be the only way people will save their investments if the dollar ever fully collapses.

The GDX has 30 well performing stocks in its ranks. In the beginning of 2011, these markets are already showing signs of continuing last year’s gains. It seems that everyone is jumping ship from traditional investments and moving over to gold miners ETF and other forms of precious metals investments. While the rest of the markets lay flat and shows very little increase in revenue, the precious metals markets are exploding. The handwriting is on the wall and investors should take heed to the warnings of where the dollar might end up at.

Anyone can invest in the gold miners ETF. New investors are recommended to start in the junior GDX before they advance to higher amounts of investments. Trading and investing in commodities is currently where you want to bank your investments at. The rest of the markets seem shaky and weak and it doesn’t look like this trend is going to end anytime soon. Investors don’t have to dump all their money into gold ETFs, but they should at least diversify their portfolios in order to soak up any losses with traditional investments. If nothing changes with our current monetary system, gold and other precious metals will continue to rise. It’s a no-brainer that investors should take advantage of the current trend before it’s too late.

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