3 Gold & Silver Mining ETFs Rocketing Higher In June
Precious metals and mining stocks have been mired in a pernicious slump that has failed to exhibit any encouraging signs of late.
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 well.
The MarketVectors Gold Miners ETF (NYSE: GDX) represents 40 publicly traded companies around the world that are engaged in the exploration, mining, and refinement of gold bullion.
This ETF currently has more than $7.7 billion dedicated to a blend of market-cap styles as a representative benchmark for the industry.
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 year.
However, a renewed surge in gold prices 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: GDXJ) 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 seen.
However, gold miners aren’t the only precious metals companies leading a turn around this month.
The Global X Silver Miners ETF (NYSE: SIL) 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.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.