Gold Bear Market: Time to Buy This Top Gold Stock/ETF
Gold is in a bear market and that's a drag on the VanEck Gold Miners ETF, but both assets could rebound.
Gold Bear Market: Time to Buy This Top Gold Stock/ETF
Overview
It was seemingly unthinkable earlier this year as gold raced to new highs, but the yellow metal is now in the throes of a bear market. Using the SPDR Gold Shares (NYSEMKT: GLD), the largest gold-backed exchange-traded fund (ETF), as the measuring stick, bullion's bear market is confirmed by the ETF trading 22% below its 52-week high at the close of U.S. markets on June 16.
Not surprisingly, the commodity's slide is a serious drag on gold stocks. Just look at the VanEck Gold Miners ETF (NYSEMKT: GDX). The largest ETF dedicated to companies that extract gold from the Earth is some 25% off its 52-week high, joining its physical gold friends in the bear camp.
Gold's in a bear market and it's plaguing this mining ETF. Image source: Getty Images.
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Originally published at www.fool.com.
