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Why Gold Miners ETFs May Be a Better Bet
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Gold bugs are left wondering whether gold mining shares and exchange traded funds (ETFs) may be a more lucrative area of the markets as the price has hovered in a narrow range around $1200 an ounce and equities are staging a comeback.
Almost 70 respected economists, academics, gold analysts and market commentators are of the opinion that gold is going to go to at least $2,500 per ounce before the top is reached. While that's a lofty prediction and we prefer to watch the trends instead, there are a couple reasons to consider the gold miners:
- With gold prices being so high right now, they're generating better profit margins because the cost of extracting the gold is so much less than what it actually is worth now.
- Much like gold, gold miners themselves are also moving in a different direction than the stock market - which can be good or bad, depending.
If the market continues to drag and the economy keeps limping along, gold mining shares may become appealing. Meanwhile, gold continues to be an attractive asset for individual investors, institutions and the central banks of many of the world’s countries.
A search of our ETF Analyzer shows that there are two gold miner ETFs, along with several other different types of gold ETFs:
For more stories about gold miners, visit our gold miners category.
