A Unique Precious Metals Exchange Traded Fund Is Launched Under A Cloud Of Worry
Keywords: Exchange Traded Funds, ETF, Gold, GOLD minining stocks, Silver
On May 22nd a new metals based Exchange Traded Fund began trading on the Amex (GDX). The new Market Vectors - Gold Miners ETF was launched by the Van Eck Global firm and trades under the ticker symbol GDX. Those who follow the Exchange Traded Fund Industry are likely to be aware of streetTRACKS Gold (GLD), iShares Comex Gold Trust (IAU) and iShares Silver Trust (SLV). All these funds have come into being with a great deal of fanfare. This new fund which tracks the Gold Miners Index happened to have been launched during one of the most precipitous drops in precious metals prices seen in years. No wonder why you may have missed its launch.
Its’ downplayed launch was too bad, especially because the Gold Miners ETF is the only one of its kind in the US. Though it is related to the precious metals industry, it is much diferent then the GLD, IAU, and SLV Funds, which are all based on the prices of either silver or gold. This is a very narrow focus, much more like investing in commodities then in equities.
The Amex Gold Miners Index, is the first exchange-traded fund in the U.S. offering investors exposure to the gold-mining equity market, as opposed to just the metal itself. This is more broad based for investors and is based on equities in the industry not commodity prices. The new ETF may present more opportunities to benefit from volatility, as mining-related shares tend to move more dramatically than overall bullion. Another key difference is that, unlike GLD, the GDX is optionable. The top ten holdings in this new ETF are:
Newmont Mining 13.51
Barrick Gold 8.50
AngloGold Ashanti 7.51
Goldcorp 6.53
Gold Fields 6.50
Freeport-McMoran 6.16
Glamis Gold 4.97
Harmony Gold 4.37
Kinross Gold 4.06
Buenaventura 3.72
With the recent downturn in gold and silver stocks , much of the thunder was taken out of the launch of the GDX. This fund had the unfortunate luck to be released for trading during a period in which the precious metals have seen their greatest setback in years. The most popular of the Gold ETF’s streetTRACKS GLD has been trading at a volume of 10 to 20 million shares for most of May. The Gold Mining ETF, GDX, has traded at a volume of 200,000 to 600,000 shares in its first week. GDX, which is a broader based fund then GLD, may have easily traded at a much higher volume its first week, if it wasn’t for a steep downturn in precious metals.
The question now is it a good time to buy this new ETF? The Gold Mining Index which this new Exchange Traded Fund is based on, has just dropped from 1200 to 1000 in one week, a big drop for an index of stocks. A bounce here is likely. There was a great deal of speculation in gold. Even if this is the bottom, it will take some time before Gold prices begin to recover from their recent plunge. Keep a close eye on the trading volume for GDX to see if institutional investors begin moving into this fund.
Andrew Goldman is president of Metal Rabbit media services, the operator of www.Exchangetradedfundinvesting.com. He has written a number of articles on finance and investment over the last ten years.
Previous Articles Highlighter:
Home Sales Continue To Drop In Southern California (1)
The rapid growth in the real estate market must eventually return to a more normal pace. When we see the number of home sales slow, especially for a multi month period, we can expect prices to lag the slowdown in sales by around three months.
A Risky Investment Becomes Commonplace (2)
This is an area that can have great volitility. Stocks have been flat for a long period of time. Investors have been looking for other vehicles to boost their returns.
Will Long Term Home Ownership Lead To Profits Or Declining Values? (3)
First lets look at the volitile markets. These include San Francisco, CA; Los Angeles, CA; and Dallas, TX. We are looking at a time period from 1986-2005. In San Francisco the return for any 5 year period ranged from a gain of 50% to a loss of 10%.
A Foreign Exchange Traded Fund Investors Should Consider (4)
Not as much money is flowing into emerging market funds now. On the other hand, Japan, which is far from an emerging market, is seeing an improvement in its economy.
One Of The Most Popular Exchange Traded Funds Will Soon Have Solid Competition (5)
This may be about to change. A new exchange traded fund due to be introduced next year is being planned by Archipelago Holdings Inc. This ETF will cover the technology sector; however it is covering the technology sector with a twist.
What Do You Need To Know About Car Loans? (6)
It's a big chunk of money to get even a small car, especially if you're buying new. This means that being ready for your car loan application is important.
Factors That Influence Car Insurance Cost (7)
A large percentage of accidents in the United States are caused by people under the age of 25 driving in an unsafe manner. To recoup the costs of these accidents, all people who are under the age of 25 are required to pay a higher auto insurance cost.
Mortgage Lending-A Few Facts To Start Down The Path To Home Ownership (8)
For a fixed rate mortgage, payments for principal and interest should not change over the life of the loan, while ancillary costs (such as property taxes and insurance) can and do change.
Home Equity Loans-Making The Best Use Of Your Current Home Investment (9)
Equity loans allow homeowners to borrow money against their home's calculated value. Equity is simply estimated by subtracting the outstanding balance owed on the home from the current market value.
Real Estate Investing: The Three Levels Of Success (10)
There is but one small caveat. You need to invest in CURRENT education. You see, what worked just a few years ago, is not working the same way today.
A Brief Guide To Final Expense Insurance (11)
The amount of death benefits that you will actually receive from the policy. The verification of the funeral director, agent, or company. Any free look laws that your state may have in place, which allows you to review your policy before committing.
How Do You Know If Your Debt Is Good Or Bad Debt? (12)
Supreme Court Justice Lewis Powell was once asked to define obscenity. Hard-pressed to come up with a definition, Powell uttered the famous line, "I know it when I see it." The same could be said for bad debt: You know it when you see it, and it certainly can be obscene.
Average Household Income Down! Recession? Depression? Worse? (13)
Do I think some misleading is done on purpose? Unfortunately, yes I do. A large percentage of the press today appear to have a bias against the current administration, and furthermore, they seem to not be above accentuating the negative every chance they get.
New Generation Real Estate Marketing (14)
Stepping Outside the Box Internet marketing has morphed into content based raltor websites, sequential autoresponders, newsletters and the like. Following are a few thoughts about each. 1. Realtor Websites.
Credit Card Fraud: How To Protect Yourself (15)
If you cannot destroy it, place it in a secure box. Cut the Carbon: Carbon copy paper is not used much anymore but you still see it in some places.
The Benefits Of The 15 Year Loan (16)
So if someone is currently 30 years old, they would pay off the loan when they are 45 instead of 60. Because it takes half the time, people frequently think that the payment on a 15 year loan is twice as much as on a 30 year loan, but this is far from the case.
Choosing The Best Mortgage : What Works For You? (17)
Graduated incomes are available and advantageous for many homeowners. This type of loan starts with smaller payments and works up to larger payments every few years. If you anticipate job promotions in the future, this solution may work very well for you, but if you want to cut down on the time you work, as mothers may want to do, you probably will not benefit from a graduated mortgage.
Are You Falling Into These 4 Frugality Traps? (18)
In the case of clothing, think about whether or not all the stuff you are buying will really be worn. It can be especially easy to overbuy for babies and toddlers, who just look so cute in everything.
What Every Parent Should Know About The College Student Credit Card (19)
Keywords: college student credit cards, student credit cards, credit cards Sending your child to college can be quite exhausting. If you have a child who studies on a college or university in another state, the distance between you and him/her means that you cannot always look out for his/her needs.
4 Debts You Want To Keep (20)
They are bad debt if you dropped out of medical school after one year to become a writer. A good debt helps; a bad debt hinders. We want to help you get rid of that bad debt.
Newer Articles Highlighter:
New Powershare ETFs Give Exchange Traded Fund Investors New Ways To Profit In Down Markets (1)
This makes for very volatile investing so take care. Andrew Goldman is president of Metal Rabbit media services, the operator of www.exchangetradedfundinvesting.com. Andrew has contributed articles on finance and environment to severla publications over the last ten years.
Another Way Of Looking At The Gold Price Meltdown (2)
Price charts are one way to look at the situation, however we need to dig deeper into the fundamentals to see what the prospects are. As the hedge fund investors have dumped gold, there is evidence new hands are coming into the market.
A New Exchange Traded Fund May Have A Major Impact On Long Term Silver Prices (3)
As the second day of trading ended with 1.5 million shares traded and silver continuing to move slightly upward, there is speculation on how long this trend will last. Silver however, is not driven by day to day news, like many equities.
California Real Estate Market Gives Mixed Messages (4)
Andrew Goldman is president of Metal Rabbit media services, the operator of www.carealestateinvest.com and www.Exchangetradedfundinvesting.com. He has written a number of articles on finance and investment over the last ten years.
Best Performing Exchange Traded Funds For 2006 Thru August (5)
This is another low volume ETF with the daily average volume around 67,000 shares. One of the hottest Exchange Traded Funds continues to be a China Fund (FXI). This fund has grown almost 20% in the last two months.
Using ETFs To Invest In A Good Performing Commodity Sector You May Have Missed (6)
This method has its risks because the water industry is so broad based and picking the right stock at the right time is not a particularly easy task. Powershares ETF is based on the Palisades Water Index.
California Foreclosure Activity Up By The Biggest Margin In 14 Years- Is The Bust Starting? (7)
It may be that home prices will begin to decline. With the increasing amount of inventory and the slowdown in home prices it is hard to imagine any other scenario except falling prices.
Exchange Traded Funds Venture Further Into Foreign Currency Markets (8)
Andrew Goldman is president of Metal Rabbit media services, the operator of www.Exchangetradedfundinvesting.com. He has written a number of articles on finance and investment over the last ten years.
New Fund For Indian Investors Can Benefit U.S. Investors (9)
Even small investors in India are very familiar with this concept. It is popular for investors to buy a certain amount of gold for long term investment. This concept of holding gold is catching on more in the United States but it is very common in India.
Two New Exchange Traded Funds Allow Unique Oil Investment Strategies (10)
Oil Trust (USO) which invests in oil futures and "rolls" the contracts to maintain exposure. Barclays Global Investors manages an "exchange-traded note" called iPath Goldman Sachs Crude Oil Total Return ETN (OIL).
Despite Slowdown California Home Prices Set New Record (11)
Buyers are becoming more careful in their purchasing decisions. As strange as it sounds, homes need to be priced right and be in pristine condition in order to sell.
New Exchange Traded Fund Makes Sophisticated Investment Strategies Available To ETF Investors (12)
Collateral for the currencies is provided by short-term treasury bills. This fixed income part of the portfolio provides yield which is used to offset the ETF fees. Investors are looking for new asset classes to invest in.
MyOwn10-Key - How To Balance Your Checking Account Without First Entering All Of Your Transactions (13)
(Finding the last place you balanced is easy if you draw a line under the last balance in your checkbook register each time you finish balancing your account.) If you find no obvious errors, you have the option of visiting your financial institution to get help.
Credit Card Types: Unsecured (14)
Finance Charge: Your unsecured credit card may include finance charges that are above and beyond the APR. Finance charges are most often triggered when you take out a advance.
The Benefits Of Gathering Relocation Information (15)
Common costs associated in relocating include packing materials, boxes for moving, tape, special containers, blankets, shrink wrap, home moving companies to pack, load, unload, and transport items, moving trucks and vans, fuel, transportation, renting a van or truck, temporary housing, and vehicle transportation.
Cashback Credit Card For Reward-Loving Individuals (16)
Carrying a credit card is not just that you can afford to pay for the interest rate and other applicable charges. Instead, it is one of the best alternatives that you can use in case you run out of cash in times when you need it most.
Holiday Insurance - A Necessity Or A Luxury? You Decide (17)
Keywords: holiday insurance, vacation insurance, travel insurance, vacation rental property insurance Taking a holiday sometimes involves months of saving and the last thing anybody wants is to go off on that holiday and then have disaster strike.
How To Get Real Estate Listings Via Real Estate Marketing Articles (18)
If you're building a business it's important to remember that building a business is a process, not an event. Consequently, it takes time to make it successful - as measured by the leads, listings that you get and the sales you make.
Introduction To Stocks (19)
Stocks trade on an exchange. The largest exchanges where the best stocks trade are the New York Stock Exchange, American Stock Exchange, and the NASDAQ. Within an exchange, there is the primary and secondary market.
Understanding A Balance Sheet (20)
So, some statements might run from December to December, while others might run from April to April. I hope this information will help you understand a balance sheet.. Try to set aside some time and log on to a stock quoting website.
Permalink to A Unique Precious Metals Exchange Traded Fund Is Launched Under A Cloud Of Worry