Gold prices have risen over 30% this year. So it’s no wonder that miners are headed for a record third-quarter earnings season. But other technical price factors could add to their future bullishness.
However, the rest of the market has yet to catch up on the potential opportunity in gold miners. That opens the door for investors to potentially catch gold mining stocks before they make an eventual run higher. Thus far, gold miners have been trending higher. But they haven’t done so to the degree they should in relation to gold bullion’s YTD surge.
“The gold miners are on the verge of reporting another best quarter ever,” an Investing.com report published in Yahoo Finance noted. “Q3’s earnings season ramping up soon will prove epic, fueled by dazzling record gold prices and slightly-lower mining costs. That ought to double sector unit profits, extending gold stocks’ long trend of massive earnings growth. Such fantastic results should increasingly catch fund investors’ attention, with their inflows driving this sector way higher.”
That said, the majority of investors have been enamored by big tech, especially when it comes to the artificial intelligence (AI) theme. In turn, this could spell bullishness for gold miners especially if the AI theme loses its mojo and investors gravitate to the next big investment opportunity.
“Gold and gold stocks are alternative investments, thriving the most when general stock markets grind lower,” the report added. “Instead they’ve been surging, spinning off vast greed and euphoria.”
2 Ways to Get Gold Mining Exposure
Investors can opt for individual gold mining stocks. But an easier way is via funds that are representative of the market. On that note, consider using the Sprott Gold Miners ETF (SGDM ) and the Sprott Junior Gold Miners ETF (SGDJ ).
For broad-based exposure in mostly large-cap companies, SGDM is an ideal alternative, seeking investment results that correspond generally to the performance of the Solactive Gold Miners Custom Factors Index. This index tracks the performance of large gold companies that are found on Canadian and major U.S. exchanges, adding diversified exposure.
Alternatively, investors can also opt for small-cap companies, which can make amplified moves to the upside when markets trend higher. For small-cap mining exposure, SGDJ is ideal, as it tracks the Solactive Junior Gold Miners Custom Factors Index. It follows the performance of the small-cap precious metal companies, allowing for greater growth potential.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel.
Past performance is no guarantee of future results. One cannot invest directly in an index. For the latest standardized performance and important risk disclosures regarding Sprott investment products, including each fund’s prospectus, which should be read carefully before investing, please review each product’s webpage by clicking on the corresponding ticker:
Exchange Traded Funds (ETFs): SETM, LITP, URNM, URNJ, COPP, COPJ, NIKL, SGDM and SGDJ
Physical Bullion: PHYS , PSLV , CEF and SPPP
Physical Commodity: U.UN COP.UN
Public Equity: "SGDLX":https://sprott.com/investment-strategies/sprott-gold-equity-fund/ and FUND
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel.
