Latest news with #VanEckGoldMiners
Bloomberg
4 days ago
- Business
- Bloomberg
Gold-Mining ETFs Losing Their Shine Following Torrid 2025 Rally
Investors are exiting exchange-traded funds that track the shares of gold-mining companies, a sign that the high-flying sector's allure may be dimming even as prices for the precious metal remain strong. Gold-mining stocks have soared this year, outpacing the 24% climb in gold prices and leaving the broader S&P 500 Index in the dust as investors sought haven assets amid worries over global trade and massive government spending. The VanEck Gold Miners ETF, the largest exchange-traded fund tracking the group, is up 57% year to date.
Yahoo
03-05-2025
- Business
- Yahoo
3 No-Brainer Gold Stocks to Buy Right Now
Gold is trading near all-time highs, resulting in it receiving much attention from investors. Newmont and AngloGold Ashanti are leading gold mining companies. The VanEck Gold Miners ETF is a great option for cautious investors who are uninterested in assuming the risks of a single gold mining company. While rare earth minerals and other critical minerals have recently become flashpoints in the escalating trade war between the United States and China, gold has also remained at the top of investors' minds. But for those interested in becoming gold bugs themselves, where is there to turn? Instead of bulking up on bullion, investors would be wise to consider clicking the buy button on Newmont Mining (NYSE: NEM), AngloGold Ashanti (NYSE: AU), and the VanEck Gold Miners ETF (NYSEMKT: GDX). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Newmont Mining is the only gold mining stock included in the S&P 500. It's the largest gold stock by market cap available on major U.S. exchanges, helping to make it a glittering choice for those interested in a more conservative gold investment. In addition to North and South America, Newmont operates assets in Australia, Africa, and Papua New Guinea. While some gold companies rely heavily on leverage to fund their various mining operations, Newmont has an investment-grade balance sheet thanks, in part, to its retiring of $1.4 billion in debt in 2024. Moreover, as of the end of first-quarter 2025, Newmont had a net debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio of 0.3. Newmont has numerous growth projects in its pipeline to ensure it continues producing plenty of the yellow metal in years to come. With the company generating strong free cash flow during this period of high gold prices, it seems likely that the company will be able to fund these projects with organic cash instead of relying on debt or issuing equity to raise capital in the near future. For the most part, those looking to supplement their passive income streams are rushing to gold stocks. Because gold producing operations and activities to identify new resources are incredibly capital-intensive, businesses will often retain the cash they generate to fund future growth. But not AngloGold Ashanti. Instead, the company -- whose stock offers an alluring 3.5% forward yield -- is dedicated to returning capital to shareholders in addition to maintaining its financial health. The company's recently revised dividend policy targets a base quarterly dividend of $0.125 per share. Additional dividend payments will also be made so that the company is returning about 50% of free cash flow to shareholders in total. All this comes under the condition that the company maintains a net debt-to-adjusted EBITDA ratio under 1.0. AngloGold Ashanti reported $942 million in free cash flow for 2024 -- a year-over-year improvement of 764%. With the company projecting gold production of 2.9 million to 3.225 million ounces for 2025 and 2026 and gold prices remaining high, the future looks bright for AngloGold Ashanti. Risk-averse investors may find an exchange-traded fund (ETF) a more appealing way to gain gold exposure. For these individuals, the VanEck Gold Miners ETF presents a great opportunity. Unlike the risks that investors assume with buying shares of a single mining company, the VanEck Gold Miners ETF mitigates the potential downside of a single company, thanks to the 63 holdings in the fund. As of the end of March, Agnico Eagle Mines and Newmont represented the two largest positions, each with weightings of about 11.6%. Royalty and streaming companies -- businesses that act as specialized financiers providing upfront financing to mining companies in exchange for things like a portion of the mined metal -- also figure prominently in the fund. Leading royalty and streaming companies Wheaton Precious Metals and Franco-Nevada Corporation are the third and fifth largest holdings in the ETF. The VanEck Gold Miners ETF has a 0.51% net expense ratio, but it's important to note that the distributions, made annually, help to defray the management costs. As of this writing, the ETF had a 12-month yield of 0.82%. While investors eager to boost their passive income streams with the help of the yellow metal will find AngloGold Ashanti to be a lustrous opportunity, those looking for a bargain will be more drawn to Newmont, which is trading at a discount to its historical valuation. It has a five-year average operating cash flow multiple of 9.7, but it's now changing hands at 7.6 times operating cash flow. On the other hand, those who are more circumspect in their approach to a gold investment will want to dig deeper into the VanEck Gold Miners ETF, which brands itself as the "nation's first gold miners ETF." Before you buy stock in Newmont, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Newmont wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $610,327!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $667,581!* Now, it's worth noting Stock Advisor's total average return is 882% — a market-crushing outperformance compared to 161% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 3 No-Brainer Gold Stocks to Buy Right Now was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
02-04-2025
- Business
- Globe and Mail
Gold Investors Take a Pause for Breath on Fears That Liberation Day Could Lead to Price Retreat
Gold investors in ETFs such as the VanEck Gold Miners (GDX) are steeling themselves today to find out whether President Trump's Liberation Day tariffs announcement will take the shine off their precious metal. Don't Miss Our End of Quarter Offers: Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks. Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter. Gold Price Caution Gold prices have rocketed in recent weeks with the spot price hitting a new all-time high of around $3,149.00 per ounce on Tuesday, April 1. It is up 19% in the year to date driven by investors flocking to it as a safe haven in a time of great economic uncertainty – thanks to fears over a global tariffs-led trade war – and geopolitical tension from Ukraine, to the Middle East and Taiwan. It's benefited ETFs such as the GDX which is up 35% so far this year and the SPDR Gold Shares ETF (GLD) which is up nearly 19%. Gold mining stocks like Barrick Gold (GOLD) have also prospered. However, caution is the golden word today as President Trump gets set to make his big Liberation Day announcement on tariffs. The spot gold price in early trading was largely unmoved at $3,124 with both the GDX and GLD flat. Is the Rally Over? Kathleen Brooks, research director at XLB, said the peak may have been reached. 'Gold is the ultimate tariff trade but the gold price faces a big test ahead,' she said. 'If U.S. stock markets start to rally after the tariff announcement is out of the way, can the gold price continue to rally?' She believes that the rally in the gold price is linked to U.S. economic policy uncertainty and once this starts to recede 'the gold price could follow.' But, arguably, tariffs aren't the sole driver. The expectations of interest rate cuts, return of higher inflation, central banks bulking up on the metal and the strong demand for ETFs like GDX and GLD could help keep the gold price prospering. Also, is it really likely that given Trump's character and previous behavior that a 'line in the sand' will be drawn today? The President is a well-known 'flip-flopper' with announcements – even perhaps to his own surprise – emerging when least expected. A prolonged trade war is also likely to ease any uncertainty in investors' minds. It's why analysts such as those at Bank of America have raised their gold price average forecasts for both this year and next. It expects gold to soar to a record $3,350 in 2026. The President will make his announcement on tariffs at 4pm EST today. Is the GDX ETF a Buy? Most Wall Street analysts don't offer ratings or price targets on the GDX, so we will look at its three month performance instead. As one can see in the chart below it has risen 29.60% over the last 12 weeks.
Gulf Insider
12-02-2025
- Business
- Gulf Insider
As Gold Nears $3,000, Here's How Its Surge Compares to Bitcoin and the Stock Market
Gold has been on an impressive run toward the $3,000-an-ounce milestone, with a years-long buying spree by central banks and economic uncertainty tied to President Donald Trump's policies leading the metal to outperform other asset classes so far this year. Gold-mining stocks, meanwhile, have started to play catch up this year after lagging behind the metal's climb in 2024. Yet long term, despite record highs for gold futures, the metal has failed to keep up with the pace of lofty gains in bitcoin and the U.S. stock market. 'Gold typically does well when other assets do badly — most of all, when the stock market falls and keeps falling,' said Adrian Ash, London-based director of research at physical-gold marketplace BullionVault. 'But stocks right now are also knocking on record highs,' Ash noted. In his more than 25 years in the gold market, he said he's 'only seen gold and stocks move like this twice' — first in 2005 to 2007 on the eve of the global financial crisis, and in mid-2020 when 'stimmy checks, zero rates and pandemic [quantitative easing] laid the groundwork for double-digit inflation.' Year to date, futures prices for gold in New York GC00-0.37% have climbed more than 11%, as of Feb. 10, while the VanEck Gold Miners exchange-traded fund GDX+0.08% climbed by nearly 24%. The S&P 500 stock index SPX-0.78%, meanwhile, has edged up by over 3% so far in 2025, after marking a record-high close at 6,118.71 on Jan. 23 While gold's approach to the latest price milestone may be reason for bulls to celebrate, the metal's performance isn't quite as impressive if you look at how it's performed since mid-2020. That marked the final months of Trump's first presidency and gold's rise past the psychologically important $2,000 mark. As of Feb. 10, gold futures, based on the most active contract, have climbed 47.8% since July 31, 2020, when gold first traded above $2,000 on an intraday basis, according to Dow Jones Market Data. That's impressive compared with an 18% fall in the iShares U.S. Treasury Bond exchange-traded fund GOVT-0.55% over that same period, but pales in comparison to a cumulative rise of about 761% for bitcoin BTCUSD+0.18% and a total return of 98.7% for the S&P 500. So few people are paying attention to gold's rise to record highs, 'let alone buying. They are focused on what have been the hot markets like bitcoin and tech stocks. But this is not unique — it's the way bull markets begin.' — James Turk, Goldmoney So few people are paying attention to gold's rise to record highs, 'let alone buying,' said James Turk, founder of precious-metals dealer Goldmoney XAU-0.90% XAUMF+0.24%. 'They are focused on what have been the hot markets like bitcoin and tech stocks. But this is not unique — it's the way bull markets begin.' Problems ahead? While the rise in U.S. stocks suggest optimism among investors, gold's impressive climb to the psychologically important $3,000-an-ounce mark may be pointing to problems ahead for the global economy. 'If gold is a barometer of economic and political fear, this run to $3,000 says that the world is becoming ever more anxious and mistrustful,' BullionVault's Ash told MarketWatch. Gold for April delivery on Comex GCJ25-0.33% settled at a record high of $2,934.40 on Monday, after trading as high as $2,947.20. 'While Trump voters see him fixing the USA's problems at home, money managers and foreign central-bank bosses see uncertainty and a real risk of chaos in global trade, finance and stability,' Ash said. Gold thrives on economic uncertainty, financial risk and geopolitical turmoil. The 47th president is delivering exactly that.' — Adrian Ash, BullionVault So at least short term, the biggest factor driving gold to never-before-seen highs is Trump, he said. 'Gold thrives on economic uncertainty, financial risk and geopolitical turmoil. The 47th president is delivering exactly that.' 'That's led gold to race ahead of all other asset classes so far this year,' he added. When it all began Central banks have been big buyers of gold and stretched their gold-buying streak to a 15th consecutive year in 2024, buying up 1,044.6 metric tons of the metal, according to the World Gold Council. 'Central banks, primarily in the emerging markets, have been significant buyers of gold for their official reserves for 15 straight years,' said George Milling-Stanley, chief gold strategist at State Street Global Advisors. These purchases doubled from 2021 to over 1,000 metric tons in 2022, 'partly in response to the decision by the U.S. government to impose sanctions on Russia … and [buying] remained at this elevated level in 2023 and 2024.' Gold demand in emerging-market countries for both jewelry and investment increased significantly as 2024 progressed, Milling-Stanley said. Gold investment in Western Europe and North America, meanwhile, also climbed strongly last year — partly for macroeconomic reasons, but also in response to the tense geopolitical situation, he said. Goldmoney's Turk believes gold's latest run to record highs may have begun with the collapse of Silicon Valley Bank back in March 2023. That 'awakened investors around the globe to the fragility of the banking system to high interest rates,' he said, contributing to gold's rise to record highs. The metal is the 'ultimate safe haven to protect your purchasing power, because when you own physical metal, you do not have counterparty risk,' said Turk. Moment of truth Milling-Stanley, meanwhile, said gold at $3,000 may provide 'validation for investors who allocated to gold in the past.' Greater media attention at this level might spark 'a fear-of-missing-out atmosphere for gold, attracting greater participation from investors,' he added. Some private-sector investors might find that price point 'a bit rich,' but in general, central banks and sovereign-wealth funds have tended to be somewhat 'less sensitive to price movements than the private sector,' said Milling-Stanley. Still, the real question will be whether gold will be able to not just reach but hold at $3,000 for long. 'Big round numbers have spooked gold in the past,' said Ash — pointing out that London benchmark gold prices struggled to hold both $1,000 and $2,000 after first hitting those all-time highs. After breaking $2,000 in August 2020, London benchmark prices spent more than 90% of the next 28 months trading back below that level, before finally moving and holding above it, he said.
