Gold Mining ETF Trouncing SPDR Gold Trust in 2014

Bloomberg reported that this year, the Market Vectors Gold Miners ETF (ARCA:GDX) has risen 25 percent, while the SPDR Gold Trust (ARCA:GLD) has climbed just 12 percent. That indicates that investors have been making more money “buying gold-mining shares rather than the metal the companies produce.”

As quoted in the market news:

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 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.

Click here to read the full Bloomberg report.