Gold-Mining ETF Outshines Bullion Fund as Haven Bet: Commodities
The Market Vectors Gold Miners ETF climbed 25 percent this year, more than double the 12 percent advance for the SPDR Gold Trust, the biggest exchange-traded product backed by bullion. This is the first quarter the company fund is outperforming the metal ETF since 2012. Assets in the producer fund expanded 6 percent in the past four weeks, compared with a 2.7 percent gain for the Gold Trust, data compiled by Bloomberg show.
Investors are returning to the shares after companies in the benchmark Philadelphia Gold & Silver Index in December traded at the cheapest ever relative to the price of bullion. Last year’s 28 percent plunge for the precious metal, the biggest since 1981, forced producers including Barrick (ABX) Gold Corp. and Goldcorp Inc. to cut spending and sell assets. The nine largest mining companies will generate free cash flow in 2014 for the first time in three years, according to analysts’ estimates compiled by Bloomberg.