Precious metals and mining stocks have been mired in a
pernicious slump that has failed to exhibit any encouraging signs
While the attention has all been focused on the Federal
Reserve and new highs in the broader market, several gold and
silver ETFs have been making a stealth move higher in June as
The MarketVectors Gold Miners ETF (NYSE:
) represents 40 publicly traded companies around the world that
are engaged in the exploration, mining, and refinement of gold
This ETF currently has more than $7.7 billion dedicated to a
blend of market-cap styles as a representative benchmark for the
GDX has been on a roller coaster ride during the first half of
2014. After getting off to a strong start, this ETF has been on a
decline that returned its price to the flat line for the
Semiconductor ETFs Are This Year's Technology
However, a renewed surge in
has thrust these stocks back into the spotlight.
Since the beginning of June, GDX has jumped over 15 percent
and could retest its prior March high if conditions remain
favorable for this momentum to continue.
In addition, the small company focused MarketVectors Junior
Gold Miners ETF (NYSE:
) has leapt more than 25 percent this month.
This impressive strength shows just so fast markets can turn
when sentiment and public opinion is working against a particular
sector like gold that is closely watched.
Whether or not this is a short-term relief rally as a respite
from selling pressure or the start of a new uptrend remains to be
However, gold miners aren't the only precious metals companies
leading a turn around this month.
The Global X Silver Miners ETF (NYSE:
) has also jumped more than 22 percent as silver bullion prices
have recovered back above their 200-day moving average.
This ETF is laser-focused on just 26 companies engaged in the
silver mining industry.
If precious metals prices continue to rally, it could spark
additional interest in more aggressive mining stocks that would
reignite a fire under this beaten down asset class.
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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