Gold Miners (GDX) Beat The Spot
Tweet Send to a Friend
Gold mining stocks continue to outperform vs. the spot price of gold.
Market Vectors Gold Miners ETF (NYSE: GDX), which tracks the price of gold mining companies, has outperformed the SPDR Gold Shares (NYSE: GLD) by about 1 percent in the last 4 trading session, and looks to outperform again today.
Traders are opting to purchase miners instead of gold with hopes that the mining stocks are cushioned against short term drops in the price of gold, a strategy that might prove valuable assuming there is a massive selloff in spot gold.
Today several analysts, including analysts at Goldman Sachs, have come out with updated projections on 2012 gold outlooks, and most of them remain bullish.
In addition, some may be initiating positions in the gold miner as dividend plays. A number of prominent players have raised payouts recently, making them attractive income vehicles.
Barrick Gold Corp. (NYSE: ABX) recently raised its qtr. dividend 33% to $0.20, offering a current yield of 2.1%. Kinross Gold (NYSE: KGC) also recently raised its dividend 33%. Newmont Mining (NYSE: NEM) offers a 3% yield.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Market Vectors Gold Miners ETF (NYSE: GDX), which tracks the price of gold mining companies, has outperformed the SPDR Gold Shares (NYSE: GLD) by about 1 percent in the last 4 trading session, and looks to outperform again today.
Traders are opting to purchase miners instead of gold with hopes that the mining stocks are cushioned against short term drops in the price of gold, a strategy that might prove valuable assuming there is a massive selloff in spot gold.
Today several analysts, including analysts at Goldman Sachs, have come out with updated projections on 2012 gold outlooks, and most of them remain bullish.
In addition, some may be initiating positions in the gold miner as dividend plays. A number of prominent players have raised payouts recently, making them attractive income vehicles.
Barrick Gold Corp. (NYSE: ABX) recently raised its qtr. dividend 33% to $0.20, offering a current yield of 2.1%. Kinross Gold (NYSE: KGC) also recently raised its dividend 33%. Newmont Mining (NYSE: NEM) offers a 3% yield.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Gold (GLD) Goes Crazy; Trades Up Despite Fed Speak
- Markets Fluctuate on Chatter of Early QE Exit by Fed
- Silver, Gold Active as Bernanke Expresses Some Concerns (SLV) (GLD)
Create E-mail Alert Related Categories
ETFsRelated Entities
Dividend
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
