Gold Miners ETF
As an investor you have many options to invest in gold. You can do this directly through an ETF in gold itself. You can also decide to buy physical gold for yourself. When you opt for these 2 ways of investing your return is depended on the price of gold.
But if you really expect the gold price to rise it is much wiser to invest in a gold miners ETF. Whenever the gold price is low some gold mines are not making any profits. Of course that will put a pressure on the price of gold mine shares, but this effect is not the most important one.
A gold mine always is sitting on an enormous amount of gold in the ground. If a gold mine is not able to exploit it in a profitable way for them the gold is worth nothing.
But when the gold price starts to rise and exploitation is profitable than the situation is totally reversed. Now they have a lot of money in the ground which they can scoop up at a profit.
When the gold price is rising further share prices of gold mines may skyrocket. A return of 400% with a gold miners ETF in a few years is entirely possible.
ETFS DAXglobal Gold Mining Go UCITS ETF
In this ETF Securities Gold Mining ETF you will find 27 of the larger goldmines in the world. This gold miners ETF is tracking the DAXglobal Gold Miners Index.
An important requirement to be listed is that the mining company is obtaining more than 50% of its turnover coming from gold. Smaller gold mines are not included due to requirements for turnover and capital demands.
In this gold miner ETF the 3 biggest gold mines are Newmont Mining Corp., Newcrest Mining and Randgold Resources, each weighed at about 10% in this ETF.
Almost half of all gold mines is located in Canada. The US comes in second with 20% and Australia follow in third place with a much smaller share.
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ETFS DAXglobal Gold Mining Go UCITS ETF info:
ETF provider: ETF Securities
Exchange: Euronext Amsterdam
The ETFS DAXglobal Gold Mining Go UCITS ETF has quotations on different exchanges and is known under several ticker symbols. As long as the ISIN number is identical you are dealing with the same ETF.