Dallas, Texas 08/15/2014 (FINANCIALSTRENDS) – Market Vectors Gold Miners ETF (NYSEARCA:GDX) are all set to report gains in the coming weeks, if gold stocks continue to show resilience.
Gold stocks are being snitched by top-line hedge funds and celebrity investors, marking much noise at the stock markets.
The line-up of hedge funds included Paulson & Co which continued to maintain its stake in, what is considered as the world’s largest gold-backed trading fund – SPDR Gold Trust. In the second quarter, the investments in gold mining stock included Soros Fund Management LLC, leading to further rally of gold mining stock.
This only signalled confidence of the investor community in Market Vectors Gold Miners ETF (NYSEARCA:GDX).
As one analyst, Axel Merk, chief investment officer of Merk Funds commented,
“Gold has become increasingly attractive to hedge fund managers who are long-term investors as real interest rates remain negative.”
The line-up billionaire investors included George Soros who moved swiftly on the gold ETFs by US gold mines nearly doubling his stake in them. He was noticeably found to increase his stake in other gold producers as well.
Market Vectors Gold Miners ETF (NYSEARCA:GDX) are the ETF investors are heading for, suggest several analysts. As Bill O’Neill who is partner at commodities investment firm LOGIC Advisors in New Jersey commented, “It shows that the premier players in investing still have faith in gold.”
Markets are being watched closely by several investors and analyst who differ from the gold hype. In addition, several investors are exercising caution in this regard and are prompting Federal Reserve to raise the interest rates as soon as possible.
Bullish gold rates are expected to hold sway only for the corresponding period of real interest rates remaining negative as well.
