Monday, August 8, 2011

GLD


A popular large-cap gold miners ETF is moving past those that store and physically hold the yellow metal for investors.
The SPDR Gold Trust (GLD), which tracks spot prices, is up 3% so far on Monday. That’s even higher than earlier when precious metals futures reacted with gusto to the S&P ratings downgrade of U.S. debt.
The Market Vectors Gold Miners ETF (GDX), which also moved sharply higher at the opening of today’s session, has now surged by 4.5%.
That’s an unusual positive cushion for the broad, large-cap focused miners ETF.
Up to this point, says MF Global’s Edward Meir, “there’s been a bit of a disconnect” in the gold market.
Gold miners have been underperforming while gold spot prices have been moving higher, observed the metals analyst. “But that gap is narrowing,” he added.
Meir is also hearing that several hedge fund managers are feeling that spot gold prices may be a bit extended at this point. “They’re concerned and many people are choosing to get their exposure through mining stocks,” Meir said.
The Junior Gold Miners ETF (GDXJ) is also starting to gain momentum. The small-cap minded stock ETF is now ahead by 3.1. Earlier, it had been lagging both its older sibling as well as spot prices.
The Global X Silver Miners ETF (SIL) is down 2.2% so far Monday while the spot price-focused iShares Silver Trust (SLV) is ahead by 3%.

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