At the end of 2018 when stock markets took a tumble, gold rose and carried some of that rally into the New Year. But what about gold miners? In an article on ETFtrends.com, Brenton Garen writes that “industry consolidation could also serve as a catalyst to drive gold miners higher.”
In January, Newmont announced it will be acquiring Goldcorp to create the world’s largest gold miner. This follows last September’s news of gold giant Barrick Gold buying Randgold. Even smaller miners are boosting their merger and acquisition activity. Australia’s Newcrest Mining just bought a majority interest in Imperial Metals’ Red Chris copper and gold mine, located in British Columbia, Canada, and is now in the process of inking a $65 million joint venture deal with Greatland Gold.
The article points out that several gold miner ETFs “stood out” in the fourth quarter and so far this year, such as the U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU), which was up 11 percent year-to-date as of the article’s publication on February 6.
Read more about consolidation in the gold mining industry by clicking here. Read the full article, “Gold Miners ETFs Are Shining,” on ETFtrends.com.
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U.S. Global Investors has authored and is responsible for the summary on this page. All opinions expressed and data provided are subject to change without notice. Opinions are not guaranteed and should not be considered investment advice. ETF Trends publisher Tom Lydon is on the board of U.S. Global Investors.