U.S. Global Investors [www.usfunds.com]

Gold Is Rallying. When Will Miners Catch Up?

Daniela Cambone of Kitco News welcomes Frank Holmes back to the program, with gold prices edging closer and closer to the key $1,300 level. Despite the rally in bullion, however, gold mining stocks are lagging behind and Daniela wants to know why. Frank says one reason is the upcoming rebalance of the VanEck Vectors Junior Gold Miners ETF (GDXJ), set to take place on June 16.

Frank explains that the rebalance has already been extremely disruptive, with great small- and mid-cap producers getting pushed down and out. The positive news? Lower prices on these undervalued stocks make great opportunities for investors, particularly since many of the companies like Klondex Mines and Gran Colombia currently have record profits and revenue growth.

 

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the interview were held by one or more accounts managed by U.S. Global Investors as of 03/31/2017: VanEck Vectors Gold Miners ETF (GDX), VanEck Vectors Junior Gold Miners ETF (GDXJ), Klondex Mines Ltd., Leagold Mining Corp, Gran Colombia Gold Corp.

The Producer Price Index (PPI) measures prices received by producers at the first commercial sale. The index measures goods at three stages of production: finished, intermediate and crude.