by Adam Hamilton
The major gold miners’ stocks have skyrocketed since mid-March’s stock panic, attracting in a deluge of new capital inflows. That recently catapulted this normally-contrarian sector to extremely-overbought levels, necessitating a rebalancing correction. The gold miners are just finishing reporting their operating and financial results from the challenging last quarter. Was gold stocks’ huge upleg fundamentally justified?
The leading and dominant gold-stock benchmark and trading vehicle today is the GDX VanEck Vectors Gold Miners ETF. Launched way back in May 2006, GDX’s first-mover advantage has grown into an insurmountable lead. With $16.8b of net assets this week, GDX commands a staggering 31.7x more capital than its next-biggest 1x-long major-gold-miners-ETF competitor! GDX is really the only game in town.