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.
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.