Market Vectors Gold Miners ETF (NYSEARCA:GDX) Is Up 8% During Trading Last Week


Dallas, Texas 10/22/2013 (Financialstrend) – Market Vectors Gold Miners ETF (NYSEARCA:GDX) is an exchange traded fund and has paid out dividend of $0.44 per share over the past year. This translates to a 1.76% dividend yield over the past year. The stock has managed to post appreciation in its asset value due to a general bull run that has got hold of the gold trading stocks recently. Tracking the trend over the past week which saw a dramatic increase in demand for gold globally, HSBC has upgraded the ratings on many strong gold producers. This rating upgrade is being proposed since the stocks at current valuation are estimated to be undervalued. The rating agency also sees a strong demand for gold emerging from markets like India with price going up at the same time, since the gold production has dipped over the past quarter due to low price.

With the demand in gold coming back the rating agency sees gold price appreciating in near term. This in turn will help gold producers and Gold ETF record more margins resulting in stronger returns compared to last 5 months.

In the last week it has seen its prospects brighten dramatically at the browsers. It has seen its stock appreciate by 7.88% during trading last week.  It was ranked second among the top ETF gainers during last week trading.

Speculation is rife on the various reasons which have contributed to the sudden rise in demand. While some are pointing out a hand full of huge sized gold transactions which have occurred in the last 20 days to be the cause of increase in demand for the precious metal, others are speculating that the reason is probably centred around distress sale by some institutions. Irrespective of the reasons in actual terms the trading price of gold saw a eye popping 3% in just 10 minutes of trading on Monday Morning in New York.