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  • Gold Miners ETF Still Brawny Amidst The Murkiness Of The Prices Of Gold 0 comments
    Sep 18, 2013 2:04 AM

    This golden glitzy metal is what investors claim as the most secure investment since the evolution of mankind. The place that this metal positions itself in is a place of security and earnings. The valuation of metal holds extreme significance in the global economies. Recently gold has plunged into a bear market in the month of April, and has seen low prices in these months. Perhaps it is an indication of a future lumpiness of the mineral. The last 12 consecutive years have seen and felt the bullish behavior of gold, and the years between 2008 and 2011 have seen a sharp rise in the prices of Gold, thus maintaining the bullish trend. The recent price fall has only led individuals to buy the mineral known to be a preferred hedging tool for preserving monetary value.

    The mineral market has not been scoring too well lately and the Gold miners fund has been down by 40.6%. The prices of the original mineral have been quite influential and resulted in a hammered market. Most of the large and medium capitalization companies pay a dividend to the investors. A reverse split had been conducted in the month of May at a ratio of 1 for 2 which helped to reduce the number of shares held but in return helped to increase the value of the share. The fund provides exposure to the best markets in the global arena, and here Gold Miners ETF offers a good opportunity to the internationally acclaimed mining companies.

    The last years have been particularly good for the Mining Industry which has been going strong. Crucial factors have been involved like some of the most potential economies had been growing head fast for example the Chinese economy. The result of the growth of these economies had helped to increase the price of gold and lead to inflows of investment in the Mining sector. The demand for metal minerals had popped its prices. What is important to realize is that the Mining Industry required only a strong and heavy investment in the initial phase to fund its heavy machinery and tools, thereafter the process of mining did not require heavy funding. So unlike other sectors, the mining sector is not affected by the prices of the metals in the market. The companies only associate the marginal cost with each tone of product, ignoring the high capital costs that had been incurred at the initial phase. Being not too volatile to the ups and downs of the price market the industry faced a stable growth rate. The decent supply of the metal in the market has been pulling the prices down. But sadly recently some of the mining companies have announced layoffs. One of the vital companies CAT has just recently announced a layoff. One worthy factor that plays an important part in the price game is the constant progress of the global economies and the growth associated with them. This leads to a constant increase in the demand for the glitzy metal and poses as repose against all odds, leading to a phase of enlightenment for the Gold Mining Funds.

    Global X Pure Gold Miners Fund [GGGG] delivers as per the performance of the Solactive Global Pure Gold Miners Index. Gold Miners ETF secures 24 global Gold Miner stocks, and the bench mark tracks these stocks which hold its assets in Canada, South Africa, Australia and UK. The top ten assets for Gold Miners Fund share about 5% of the holdings each with SIBANYE GOLD SPONS ADR as the highest asset holder, and the fund charges its investors a fees of 0.59% on annual transactions.

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