25.04.2012 - Are bullion ETFs responsible for gold miners’ dismal performance?
Gold bullion ETFs are in positive territory for 2012, however, the mining stocks have failed to keep pace. Some gold miners are blaming this problem on exchange traded funds, the investment tool that has allowed easy access to this area of the market. “Although gold miners obviously depend on high gold prices, investing in mining stocks is a lot different from buying bullion, either directly or through bullion ETFs. For miners to shine, they have to demonstrate not only that high gold prices will create profits but also that they’ll do everything they can to operate efficiently and maximize profits. If that happens, then mining companies won’t have to worry about attracting capital — investors will flood them with it,” Dan Caplinger wrote on The Motley Fool...............................................Full Article: Source
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