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@Larry Edelson FYI ‘Gains in gold miners worked like a leveraged bet on gold’

Posted by Mr.Copper @ 13:53 on August 16, 2016  

Larry, You will learn more by listening, rather than talking.

“You also have to account for a tremendous slump in gold prices over the past several years and whenever an asset class is hated that much, the comeback is usually epic.”

All of the 10 best-performing unlevered ETFs in the quarter that ended Thursday were exchange-traded products backed by gold and silver miners, according to XTF.com.

Investors piled into gold and silver so resolutely that ETFs tracking miners and materials companies rallied between 40% and 70% in the first three months of 2016.

“The gains in Market Vector Gold Miners ETF GDX GDX, +0.36% worked almost like a leveraged bet on gold, because those companies had been beaten up so badly, that a rise from a lower base meant much greater returns,” said Eric Balchunas, an ETF analyst at Bloomberg.

GDX has risen nearly 46% since the start of the year, while gold futures US:GCM6 gained 16.5% in the quarter.

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Post by the Golden Rule. Oasis not responsible for content/accuracy of posts. DYODD.