Us Global Go Gold And Precious Metal Miners Etf

admin media

Us Global Go Gold And Precious Metal Miners Etf – Spread bets and CFDs are complex instruments and have a high risk of losing money quickly due to leverage. 71% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money

71% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Us Global Go Gold And Precious Metal Miners Etf

Us Global Go Gold And Precious Metal Miners Etf

The US Global Go Gold and Precious Metal Miners ETF share price has climbed as the falling US dollar boosts commodity prices. While the price of gold itself has fallen in recent months, the fund’s exposure to mining and other metal-producing companies has supported the ETF’s price overall.

Get Physical With Precious Metal Ownership

A falling US dollar is good news for commodity prices as it leads to increased demand

Many of the top holdings in the US Global Go Gold and Precious Miners ETF have reported robust results in recent months

The US Global Go Gold and Precious Metal Miners ETF [GOAU] share price has risen 18.6% in the past month as the price of gold and other precious metals has retreated. The fund has been boosted by the strong performance of many of its top holdings, which include Wheaton Precious Metals Corporation [WPM], Franco-Nevada Corporation [FNV] and Royal Gold [RGLD].

The fund primarily invests in companies engaged in the production of these metals, either through mining and production, or through holding royalty contracts (where a company will provide financing to help set up or operate a mine, in exchange for a percentage of the revenue generated by that mine).

Gold Surges To 6 Month High, And Analysts Expect Records In 2023

By investing in companies that use the passive royalty model, their operating costs can be significantly reduced, leading to very high margins. This has benefited many of the fund’s holdings recently, as they have maintained strong profitability.

In terms of placement, more than 50% of the fund’s holdings are in Canada, while 18.7% are in South Africa and 13% in the United States. The fund owns 29 different holdings.

Although the price of gold has fallen from the price of over $2,000 an ounce it commanded in March to today’s price of $1,761 an ounce, the fund’s top holdings have continued to deliver robust results.

Us Global Go Gold And Precious Metal Miners Etf

Take Wheaton Precious Metals, which is the fund’s top holding with a weight of 10%. The firm recently announced that net income for the nine months ended September 30 had risen to $503 million from $463 million a year earlier. This despite a decline in income. As a result, Wheaton’s stock price has managed to rise 16.5% in the past month.

Etf Series Solutions Trust

Another strong performer is Royal Gold (which makes up 9.5% of the fund), which increased its quarterly dividend by 17% to $0.35 per share. This is an important sign of confidence in the company’s prospects. At the same time, Royal Gold also paid back $50 million in debt, leading to a far healthier balance sheet. This has increased the stock by 12.6% in the last month.

Franco-Nevada Corporation (which makes up 9.6% of the fund) has also performed very well. In fact, in its third-quarter trading update, it reported record revenue of $352.3 million, net income of $196.5 million and adjusted EBITDA of $301.2 million year-to-date. This has seen the stock increase by 18.02% in the last month.

Since most of the US Global Go Gold and Precious Metal Miners ETF’s holdings have significant exposure to the price of gold, this is the main factor driving the fund’s performance. In fact, since the beginning of November, the price of gold has managed to rise from $1,600 per ounce to around $1,750. This has come as the US dollar has begun to weaken.

There are also further sentiments that the US dollar may have peaked and could weaken further. According to recent data from October, inflation in the US was “only” 7.7%, and below the forecast of 8%. This could lay the groundwork for smaller interest rate increases from the US central bank, a factor that could further weaken the US dollar. This has further increased the price of precious metals and gold.

The World’s Top 10 Gold Mining Companies

As a strong inflation hedge, gold is likely to continue to see increased attention from investors. This is likely to have a positive impact on the US Global Go Gold and Precious Metal Miners ETF’s share price.

Unfortunately for the GOAU, some analysts do not believe that the latest rise in the gold price will last. According to British research firm Metals Focus, it expects the average price of gold to fall 10% in 2023, bottoming out at around $1,500 per ounce.

However, analysts remain confident about the fund’s top holdings. According to MarketWatch, Wheaton has 14 ‘buy’ ratings and three ‘hold’ ratings. Its average price target of $47.76 represents a 24.1% upside to Friday’s close.

Us Global Go Gold And Precious Metal Miners Etf

Also according to MarketWatch, Franco-Nevada Corporation has moderately positive analyst ratings, with four ‘buy’ recommendations, three ‘hold’ and one ‘sell’. With an average price target of $151.63, this implies a slightly smaller upside of 4.9%.

Mining: Extreme Prospects

CMC Markets is an execution-only service provider. The material (whether it expresses opinions or not) is for general information purposes only, and does not take into account your personal circumstances or goals. Nothing in this material is (or should be considered to be) financial, investment or other advice that should be relied upon. No opinion expressed in the material constitutes a recommendation by CMC Markets or the author that a particular investment, security, transaction or investment strategy is suitable for a particular person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment analysis. Although we are not specifically prevented from acting before we provide this material, we do not seek to profit from the material until it is disseminated.

CMC Markets does not endorse or express any opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be liable for any loss that you may incur, either directly or indirectly, arising from an investment based on the information contained herein.

*Tax treatment depends on individual circumstances and may change or may vary in a jurisdiction other than the UK.

Global Online Precious Metals

Updates Digital Transformation India Technology Lithium & Battery Technology Semiconductors 5 Top Stories Siemens Raises Loss Forecast; Barbie tops $1 billion; Hua Hong’s Shanghai IPO Siemens Energy’s chief executive has said the company has “rolled out platforms into the market” too quickly, as losses at wind turbine subsidiary Siemens Gamesa widen. 7 August 2023

News Copper Can the Mara copper deal drive Glencore’s share price higher? Glencore has confirmed a purchase of partner Pan American Silver’s majority stake in Argentina’s Mara copper project, as the miner seeks to increase exposure to copper. 7 August 2023

Updates India tech Semiconductors Gaming Electric vehicles Fintech 5 Top Stories Nintendo posts record profit; India key for AMD; PayPal’s margins squeezed Mahindra & Mahindra has sold a 3% stake in its electric vehicle (EV) unit to Temasek for $145 million, in a deal that values ​​the division at $9.8 billion. 3 August 2023

Us Global Go Gold And Precious Metal Miners Etf

Industry spotlight Longevity Artificial intelligence How does artificial intelligence drive cancer treatment and the theme of longevity? Drug discovery and medical innovation can mean improved patient outcomes for the aging population. 03 August 2023 The first eleven months of 2020 have been an eventful period in the gold market. After ending 2019 at $1,520 an ounce, the price rose to over $1,700 in March. Risk conditions took the yellow metal in 2019 close to around the $1,450 level. The March low gave way to a massive rally that lifted the precious metal above its 2011 all-time peak in July on its way to a record high of $2,063 on the continuous futures contract in early August. Gold had risen to new all-time highs across virtually every currency in 2019 and 2020. The move in the US dollar was the last shoe to drop as gold eclipsed the $2,000 level. The price of gold has risen higher for the last eight quarters in a row. A close above $1,890 on December 31, 2020 would mark the ninth. As of December 2, the price was about $60 below that level.

Mining Capital Expenditure To Rise By 22% Across Leading Miners In 2022

Since the gold bull market started at the turn of this century at the $250 per ounce level, every price correction has been a buying opportunity.

Gold mining stocks tend to outperform gold futures on a percentage basis on the upside and underperform when the price corrects. The mining shares carry idiosyncratic risks for management and specific producing characteristics. However, products that hold a portfolio of mining stocks diversify the idiosyncratic risk.

The US Global GO Gold and Precious Metals Miners ETF product (NYSEARCA:GOAU) holds a portfolio of gold mining stocks. This product’s twist is that it has a significant percentage of its net worth invested in mining stocks that use a royalty model.

The nearby COMEX gold futures contract moved from $1,450.90 in mid-March to

Gold Price Hits Record High Amid Fears Over Coronavirus Crisis

Gold miners etf, sprott junior gold miners etf, van eck gold miners etf, sprott gold miners etf, vaneck vectors gold miners etf, best gold miners etf, junior gold miners etf, precious metal etf, 3x gold miners etf, gold miners etf gdx, precious metals miners etf, vanguard gold miners etf

Also Read

Bagikan:

Tags

Leave a Comment