Give Up Or Load Up? Gold Stock ETFs
By Christian Magoon:Gold stock ETFs completed another dreadful week with the largest gold mining ETFs - GDX and GDXJ - off over 5%. This pushed both ETFs into negative double digit territory for 2012. GDX, the large cap gold miners focused ETF, is now off 24% over the last 12 months. The junior gold miners ETF, GDXJ, is blazing a trail that could end up at a 50% loss as the fund is now down 42% in the last year. Adding insult to injury GLD and IAU, the leading physical gold ETFs, have gained over 7.9% during the same time period. Here's the gold stock ETF performance grid from GoldETFs.biz.
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The disconnect between gold stocks and the price of gold is showcasing the perils of an indirect investment approach to the yellow metal. While physical gold has had its challenges over the last year, it has been closeComplete Story »