Followers | 679 |
Posts | 140863 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Wednesday, October 02, 2019 7:40:51 AM
By: 24/7 Wall St. | October 1, 2019
Gold has a long history of ups and downs, and it has been considered one of the key measurements of national reserves for centuries. Now that the gold standard is dead, and physically would be next to impossible to ever reinstate in today’s world of massive economies, gold has been very important to certain types of investors.
Some investors prefer to buy gold coins or other forms of gold, and institutions historically purchased gold bars. With the rise of exchange-traded funds, there are many investors of all sizes who purchase the SPDR Gold Trust (NYSE: GLD). This is one of the largest exchange-traded products out there and the largest gold ETF by far with close to $44 billion in total gold holdings on last look at the ETFdb.com site, and it has a 0.40% expense ratio. It is still up over 14% so far in 2019, and it is down less than 4% over the last week and month.
The iShares Gold Trust (NYSE: IAU) was last seen with $16.4 billion in assets and a 0.25% expense ratio, and the SPDR Gold MiniShares Trust (NYSE: GLDM) ETF from State Street, which focuses on a having a lower share price and low 0.18% expense ratio now has $1.05 billion in assets.
There is another class of gold investors who have been purchasing the gold miners. These companies have most of their fortunes tied to mining for gold and profiting from that, and some now finally pay dividends. While there is individual company risk in picking any one company, two major mergers in the gold miners have consolidated the industry down to where gold mining is now dominated by two pure-play large cap stocks.
The VanEck Vectors Gold Miners ETF (NYSE: GDX) has pulled back more than gold from its highs, but the ETF is still up about 26% so far in 2019. That is blowing away the Dow and S&P 500. And those gains are after a drop of more than 8% over the last week and a drop of about 10% over the last month. At $27.22, the VanEck Vectors Gold Miners ETF has almost $11.3 billion in assets under management along with a 0.53% expense ratio. While it has 46 holdings, not all are actively traded in the United States and the ETFdb.com site showed that its top 10 stock account for over 61% of the entire weighting — and the top two stocks account for over 22% of the whole ETF.
At this time, there are effectively two giant pure-plays in gold mining, and then there is everyone else. In fact, these two each have a larger market cap than the number-3 and number-4 market caps combined… and of the rest with under $10 billion market caps it would take 5 or 6 of the top players outside of royalty investor Royal Gold to reach the same market cap as either of the top two companies by market cap.
Newmont Goldcorp Corporation (NYSE: NEM) was last seen trading down 0.5% at $37.73 on Tuesday. It has a $30.9 billion market cap (versus $10 billion and $11.9 billion in expected 2019 and 2020 revenues, respectively) and a 52-week range of $29.06 to $41.23. Its shares have fallen almost 5% in the last week and were down 5.5% in the last 30 days, but it is down 8.5% from its recent highs. Newmont Goldcorp comes with a yield of close to 1.5%.
Barrick Gold Corporation (NYSE: GOLD) was last seen trading up 0.06% at $17.34 with a $30.3 billion market cap on Tuesday (versus $9.7 billion and $10.7 billion in expected 2019 and 2020 revenues, respectively). Barrick has a 52-week range of $11.09 to $20.07, and its share performance has been -6.8% in the last week and -10% in the last 30 days. Barrick is down almost 14% from its recent highs. Barrick Gold’s dividend yield is about 0.9%.
There is a second layer of miners in the junior miners, for those with a market cap in the low-billions and down under $1 billion. With 70 holdings in the Van Eck Vectors Junior Gold Miners ETF (NYSE: GDXJ), the ETFdb.com site showed that the top 10 holdings account for just over 42% of the entire ETF and most of the top holdings are generally around a 5% cap-weighting. It has about $4.2 billion in assets and comes with a 0.54% expense ratio.
Now that the massive mergers have taken place, it seems fair to wonder if more gold miners and exploration companies will tie the knot. Franco_Nevada Corp. (NYSE: FNV) and Agnico Eagle Mines Limited (NYSE: AEM) are the only other two gold miners with a market north of $10 billion on a primary US equity exchange but both are Canadian.
It seems easy to imagine more consolidation in the gold mining sector. That said, it’s hard to do cross-border integrations and almost all of the larger companies have gold mining and exploration properties located in many countries around the planet.
There are still many mid-cap and small cap gold miners that can be invested in, and there are other ETFs to choose in mining and in the price of bullion. That said, it’s easy to see that the gold sector has become far more concentrated with a few dominant players followed by many other companies that are going to be some form of a story stock, a niche play or even a value stock.
Read Full Story »»»
• DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
Recent GDX News
- YieldMax GDXY Name Change • GlobeNewswire Inc. • 01/25/2024 04:22:00 PM
- Surging S&P 500 Breadth • ValueWalk • 07/19/2023 03:16:37 PM
- S&P 500 Corrects In Breadth • ValueWalk • 07/18/2023 03:08:49 PM
- If The USDX Fell So Much, Why Didn’t Gold Truly Soar? • ValueWalk • 07/17/2023 05:16:20 PM
- USD’s Decline That’s… Bearish For Gold?! • ValueWalk • 07/12/2023 02:38:08 PM
- S&P 500 Late Day Reversal Worry • ValueWalk • 07/10/2023 03:17:34 PM
- Massive Gaming Celebrates Global Launch of House of Blackjack with USDC Earning Race • ValueWalk • 07/10/2023 02:44:17 PM
- Breathers In Mining Stocks Are Not Real Rallies • ValueWalk • 07/06/2023 05:20:55 PM
- S&P 500 Character Changes • ValueWalk • 07/06/2023 03:10:06 PM
- S&P 500 – As Bullish As It Gets • ValueWalk • 07/03/2023 04:01:21 PM
- The Great Gold Migration: How Asia Is Dominating The Global Gold Landscape • ValueWalk • 06/30/2023 05:07:35 PM
- S&P 500 Dip Buying And Tame PCE • ValueWalk • 06/30/2023 03:34:13 PM
- The Bullish Reversal In Gold Is Coming • ValueWalk • 06/29/2023 04:00:44 PM
- Insufficient S&P 500 Rotations • ValueWalk • 06/27/2023 02:41:42 PM
- Failing S&P 500 Rotations • ValueWalk • 06/23/2023 03:09:19 PM
- Countdown to S&P 500 Downleg • ValueWalk • 06/19/2023 01:49:20 PM
- Now THAT Was The Game-Changer For The Price Of Gold! • ValueWalk • 06/15/2023 04:40:35 PM
- S&P 500 Manages To Recover Initial Decline • ValueWalk • 06/15/2023 03:30:07 PM
- S&P 500 Manages To Recover From Tech-Driven Decline • ValueWalk • 06/15/2023 03:30:07 PM
- S&P 500 Withstands The Initial Selling – No Hike Tomorrow • ValueWalk • 06/13/2023 03:15:19 PM
- Roadmap For Mining Stocks – Courtesy Of The Stock Market • ValueWalk • 06/06/2023 03:17:49 PM
- Stocks To Still Extend S&P 500 Upswing • ValueWalk • 06/05/2023 03:31:02 PM
- AI, Stocks, And Gold Stocks – Connected After All • ValueWalk • 05/31/2023 03:29:15 PM
- Could Gold Miners Finally Stop Sliding?! • ValueWalk • 05/26/2023 08:42:37 PM
- S&P 500 Fine Selling Initiative • ValueWalk • 05/24/2023 03:06:00 PM
Bantec Reports an Over 50 Percent Increase in Sales and Profits in Q1 2024 from Q1 2023 • BANT • Apr 25, 2024 10:00 AM
Cannabix's Breath Logix Alcohol Device Delivers Positive Impact to Private Monitoring Agency in Montana, USA • BLO • Apr 25, 2024 8:52 AM
Kona Gold Beverages, Inc. Announces Name Change to NuVibe, Inc. and Initiation of Ticker Symbol Application Process • KGKG • Apr 25, 2024 8:30 AM
Axis Technologies Group and Carbonis Forge Ahead with New Digital Carbon Credit Technology • AXTG • Apr 24, 2024 3:00 AM
North Bay Resources Announces Successful Equipment Test at Bishop Gold Mill, Inyo County, California • NBRI • Apr 23, 2024 9:41 AM
Epazz, Inc.: CryObo, Inc. solar Bitcoin operations will issue tokens • EPAZ • Apr 23, 2024 9:20 AM