Gold prices look like they’re heading towards that $2,000 price level and miners couldn’t be more excited. Case in point is Northern Vertex where its Moss Mine in northern Arizona is thriving as a result of increasing gold prices.
“When you look at the Moss Mine, we’ve invested over $100 million to get this project where it is. And our current market cap is sitting under a $100 million,” said Ken Berry, CEO of Northern Vertex, via a Kitco News article. "This exploration program has a goal of doubling our resource. We’re currently setting up just under half-million ounces, global resources.
“We’re now hitting our stride where the production is increasing quarter over quarter. And now we look towards, opportunities to utilize Northern Vertex and the Moss mine is a platform for growth,” he added. “There’s going to be a lot more attention paid to this property and company in the in the quarters to come.”
ETF investors looking at miner-focused funds can start with the VanEck Vectors Gold Miners (GDX ). GDX seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE® Arca Gold Miners Index®.
The fund normally invests at least 80% of its total assets in common stocks and depositary receipts of companies involved in the gold mining industry. The index is a modified market-capitalization weighted index primarily comprised of publicly traded companies involved in the mining for gold and silver.
Another option to consider is the VanEck Vectors Junior Gold Miners ETF (GDXJ ). GDXJ seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVISÂ® Global Junior Gold Miners Index.
The fund normally invests at least 80% of its total assets in securities that comprise the index. The index includes companies that generate at least 50% of their revenues from gold and/or silver mining/royalties/streaming or have mining projects with the potential to generate at least 50% of their revenues from gold and/or silver when developed.
“Bullish momentum present in the precious metals markets has been undeniable in its strength and the GDXJ has rallied by more than 200% since the fund hit its recent lows on March 13th, 2020,” a Seeking Alpha article written by “Income Generator” noted. “Generally speaking, these are the types of performances that tend to force investors into the mindset that it’s time to sell a specific asset. However, positive corporate earnings results from several companies contained within the VanEck Vectors Junior Gold Miners ETF suggest that the fund could still move higher once a corrective trading period is established.”