Gold Miner Bonds Bringing Impressive Yields

Precious Metals

Writing for Markit, research analyst Simon Colvin recently pointed out how well gold miner bonds are faring in relation to the gold price and gold equities. As quoted in the article: Although gold has surged by over 15% this year, the commodity’s price has been outpaced by the bonds issued by gold miners, according to …

Writing for Markit, research analyst Simon Colvin recently pointed out how well gold miner bonds are faring in relation to the gold price and gold equities.
As quoted in the article:

Although gold has surged by over 15% this year, the commodity’s price has been outpaced by the bonds issued by gold miners, according to the newly launched Markit iBoxx USD Gold Mining index.
Gold bonds have returned 23% ytd on a total return basis, driven by a collapse in spreads
Bonds issued by gold miners have returned 20% since gold’s peak in 2011
Markit iBoxx USD Gold Mining index yield is still above 5%, despite recent performance

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