Market Vectors Gold Miners ETF (NYSEARCA:GDX) Seeing Better Days At Stock Market

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Dallas, Texas 03/06/2014 (FINANCIALSTRENDS) – Market Vectors Gold Miners ETF (NYSEARCA:GDX) is the mining stock company which is seeing some better days at the stock market, in comparison to bullion. Following the post-settlement scenes, which are yet to fall in place in the Ukraine, metal miners are expected to see high growth.

Gold rally in Feb  

Gold miners across the globe had a good rally in February, making good as much gains as possible. Analysts are bullish the rally holds out over the next months as well. The current scene in this sector has   led to hostile takeover and acquisitions, as well as mergers.

Kinross Gold had lowered its gold reserves the previous year, following the report on North American miners’ year-end results. However, companies such as Kinross Gold appear to have lost out, causing unlimited complications.

Market Vectors Gold Miners ETF (NYSEARCA: GDX) has felt the repercussions of poor decision making by miners. As many did not see the nearly 30% drop in prices, most of the companies were affected. The industry standard is to fix prices above the current prices per ounce. So, when the current price was at about $1,250 an ounce, Barrick’s Gold had fixed the same at $1,500 per ounce while GoldCorp prices were at $1,350, besides Newmont Mining committed at $1,400.

The point that will affect nearly all of these players is that- miners with higher reserves, high costs and los grades are likely to be exposed to high risks. Currently, GoldStar Resources, Iamgold as well as Gold Fields are expected to see some of the risks.

Market Vectors Gold Miners ETF (NYSEARCA: GDX) is currently poised to watch the rally in the platinum miners as gold indexes, be it SPDR Gold Shares, or the iShares Silver Trust showing marginal movement.

On the contrary, Platinum metal miner StillWaterMining have seen average-to-good performance, reporting 4% rise in the price gains, besides platinum and palladium reaching reportedly high levels of growth.

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