Precious Metals ETFs Move Higher. A Price Chart Analysis


Perhaps sensing an inflation comeback — or fear of as an yet specified something — buyers are returning to gold and silver stocks. It’s not exactly a favorite sector among Nasdaq 100-crazed investment managers, so it worth noting how strong these precious metals exchange traded funds have become lately.

With Wall Street mesmerized by the unending hype afforded to artificial intelligence and related equities — NVIDIA
NVDA

DIA
, Apple
AAPL
, Microsoft
MSFT
— it might be easy to miss the upward trend in the stocks for as boring an industry as gold and silver mining. Someone is definitely purchasing these again and with decent volume.

Precious Metals ETF Price Charts.

The VanEck Vectors Gold Miners ETF consists of 57 of the larger capitalization industry names such as Newmont Mining
NEM
, Barrick Gold, Agnico Eagle and Gold Fields. Total net assets amount to $13.20 billion. It’s probably the most popular of the gold mining exchange traded funds.

You can see that the price made it above the 200-day moving average on heavy volume Monday and stayed up there today. The gain from the October low to the present is 18%, not bad for about 8 weeks. Note that the 50-day moving average may be about to turn upward.

The VanEck Vectors Junior Gold Miners ETF has total net assets of $4.34 billion and holds 99 stocks, almost entirely among the smaller capitalized miners (producers and exploration companies), the most notable of which are Kinross Gold and Alamos Gold.

That October low was $30.50 and today’s closing price was $38.25 for a 20%+ gain in 2 months. You can see 3 closes above the 200-day moving average which looks like a breakout of some kind, despite the volatility sometimes seen in this sector. The 50-day moving average is now tilting upward.

The Global X Silver Miners ETF consists of 32 publicly traded silver mining companies. Its top NYSE holdings are Wheaton Precious Metals, Pan American Silver, Hecla Mining
HL
and Campania de Minas Buenaventura. Net assets for the ETF come to $928.43 million.

Since mid-November, the price has rallied and now trades above the 200-day moving average again. The 50-day moving average appears to be turning to the upside. The relative strength index is signaling “overbought,” sign that the level of buying may need a rest.

The Prime Junior Silver Miners and Explorers ETF is designed, according to the company’s website, “to replicate as closely as possible, before fees and expenses, the price and yield performance of the Prime Junior Silver Miners & Explorers Index. The Index provides a benchmark for investors interested in tracking public, small-cap companies that are active in the silver mining exploration and production industry.”

Although the action is not as striking as the examples shown above, this ETF made it up to above its 200-day moving average from the first time since May. The price movement in November is almost entirely upward with the 50-day moving average about to begin trending in that direction now.



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