Sunday, June 14, 2009
Junior Gold Mining ETF?
The folks behind the GDX ETF, Van Eck Global, are apparently planning to launch a junior Gold mining ETF. Here's a link for those interested in reading the preliminary info.
This is big news and will bring liquidity into this sector of the market. A diversified basket of miners is exactly what is needed in the junior Gold mining sector due to the high individual company risk. I think Van Eck Global is smart and is starting this fund at the right time (looks like it will take a few months for it to be available). I for one will be buying junior Gold miners in spades before the year is over and will certainly use this planned ETF if its holdings and expenses look good.
Junior Gold miners are going to become a raging bull market soon and this ETF, if it comes to fruition, will only hasten the stampede into this sector once it gets going.