Mining ETFs and companies
ETFs (exchange traded funds) that have seen a rise in prices due to surging bullions include the Global X Silver Miners ETF (SIL) and the VanEck Vectors Junior Gold Miners ETF (GDXJ). These two indices have gained by 17.20% and 13.50%, respectively, on a trailing 30-day basis.
Most of the component companies in these ETFs have also seen substantial rises. Specifically, Kinross Gold Corporation (KGC), AngloGold Ashanti (AU), and Pan American Silver Corporation (PAAS) have risen by 34.20%, 28.50%, and 19.40%, respectively, on a trailing 30-day basis. The three stocks together make up 9.10% of the VanEck Vectors Gold Miners ETF (GDX).
Gold imports in India reportedly fell by about 50% in September 2015 compared to August. Gold had previously fallen to a monthly average of ~67 tons. But the gold price crash since 2013 has seen a net total of approximately 1,439 tons leave the UK and head to Asian markets. With looming fears of a global rate hike, we might see gold prices retreat, but the likely effect on equities in such an event still remains uncertain.
In the next part of this series, we’ll look at platinum’s coiled spring effect since September 2015.