Any Glitter Left in Gold Miners?
After a lackluster 2015, the yellow metal's price--and the prices of gold-mining stocks--have surged this year.
It's been tough to be a gold bug during the past several years. Since September 2011, the yellow metal's price has plummeted by about 24%, while many mining stocks have fallen even further. But as gold investors know, returns can rebound in an instant. Between Jan. 14 and Feb. 11, 2016, the commodity's price climbed by 16%, and is up 23% year-to-date as of this writing. The NYSE ARCA Gold Miners Index, which includes many of world's gold producers, has skyrocketed by a whopping 91% this year as of this writing.
Gains like these don't go unnoticed: Investors have been flocking to gold-related products. According to Morningstar, $16.8 billion has gone into gold ETFs and precious metal funds this year. That far exceeds inflows into every other commodity subsector. It's also a major reversal from last year. In July 2015, about $1.54 billion left the sector, while this past July, $1.51 billion came in.
Bryan Borzykowski does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.