A favorite among the group of financial vehicles it is the best hedging fund considered to be the most efficient investment against inflation ups and downs. A beautiful characteristic of the glitzy metal is that it acts as a luxurious cushion at times of inflation like being part of a royal living room, where the glamorous appeal never dies!
Its relationship with the dollar is most interesting. When the rates of the currency lose their strength the precious metal stands robust and attracts the investor's eye. It showcases its value and capability to ward off the insecurities related to investing and at any time of the day, this precious metal can pay off as one of the best currency reserves. This is just not the sole reason for catching the investors acclaim, but the past centuries have experienced the worthiness and craze for this mineral and invested grossly in the exploration and refining of the metal which brings applause to the investments in the Gold Miners Fund.
By investing into the Gold related ETFs the investor puts him into a smoothing portfolio with low volatility. This yellow metal has been attracting a large number of investors that fancy the precious metal to be part of the portfolios in the basket. Recently there seems to be a trend towards indirect exposure of the yellow metal through companies that are engaged in the mining, processing and exploring of this metal. The inflow of investments is towards the funds that are related to the above activities.
Gold price play a very significant role in the inflows of investments. As the prices of the precious metal goes up so does the inflow of funds in the stocks of the respective industry. This sort of investment offers indirect exposure to gold and helps to avoid any shortcomings related to the exposure.
The prices related to the mining costs of Gold for an ounce is approximately $950-$1100, and the cost for silver stands at an approximate value of $21-$23. Africa and Latin America have shifted some of the mining bases to under water sites, only increasing cost of mining. At times the cost issues of mining reach prices which make the prices of the metal higher than the actual price the metal is truly salable for. During the last decade it has been seen at times that the production cost of the yellow metal has increased twice the actual cost and the silvery metal has seen the cost of production increase thrice the amount. So the key to success here is that prices of the precious metals have to remain high in order to bring profitability into the mining sector. There is an association between the prices of metals and the investment inflow into the Gold Miners Fund.
Recent news relating to the purchase agreement and sale with Gold Fields Limited and Barrick Gold Corporation has shown positive attractions towards the cash flow and global credit rating for Gold Fields. The production level is anticipated to increase substantially.
The Gold Miners ETF has a very globally diverse exposure to its credit and includes companies that are based in Canada, South Africa, the United States, Australia, the United Kingdom, Jersey, Russia, China and Turkey.
Global X Pure Gold Miners ETF [GGGG] delivers as per the performance of the Solactive Global Pure Gold Miners Index. Gold Miners ETF operates at an annual expenses ratio of 0.59%. The top ten stocks for this gold mining fund are SIBANYE GOLD SPONS ADR, CENTAMIN EGYPT LTD, KOZA ALTIN ISLETMELERI AS, ZHAOJIN MINING INDUSTRY, ALACER GOLD CORPORATION, OSISKO MINING CORPORATION, ALAMOS GOLD