GOLD STOCKS NEWS – The long-awaited outperformance of gold stocks relative to the yellow metal may finally be arriving.
Not only did the Market Vectors Gold Miners ETF (GDX) rally to a new all-time high this week – and thereby confirm the new record in the price of gold – but today the gold stocks ETF rebounded into positive territory in the face of a $56, or 3.0%, sell-off that took the yellow metal down to $1,819 per ounce.
The GDX opened considerably lower alongside gold bullion, reaching an intra-day low of $63.10 this morning. As trading progressed, however, the GDX rebounded as traders and investors scooped up shares of many of the world’s largest gold producers. The gold stocks ETF bounced back by 3.7% to finish higher by $0.09 at $65.43 per share.
In doing so, the GDX outpaced the yellow metal by its largest margin this year.
Notable gold stocks posting gains included the GDX’s two largest components – Barrick Gold (ABX) and Goldcorp (GG) – which finished higher by 1.7% and 1.0%, respectively.
Furthermore, since June 16, 2011 – when the GDX reached a 52-week low of $51.10 – the gold stocks ETF has climbed 28.0%, compared to just an 18.2% rise for the spot price of gold.
Many long-time gold bulls – including Eric Sprott, John Hathaway, and Richard Russell – have advocated investing in gold stocks due to the leverage to the gold price that they can provide, only to see the sector continue to lag the yellow metal throughout the ongoing 10+ year bull market in gold.
Perhaps this trend is finally beginning to change.
West Kirkland-Newmont JV Yields Positive Results
The TUG property is contiguous with 900 square kilometers (220,000 acres) of mineral rights in the Long Canyon Trend that the Company has optioned through a recent transaction with Rubicon Minerals (RBY). The combined Newmont and Rubicon option agreements give West Kirkland a dominant land position within the Long Canyon Trend and will be the focus of the Company's exploration efforts in Nevada. Full West Kirkland Mining Press Release.
*It confirms that the hinge of the gentle fold in the known gold-silver mineralization is prospective for high grades and good thickness near surface.
*WT11-002 is located at the northern end of the TUG deposit, approximately 75m, beyond any historic drilling and approximately 735m to the northwest of the Company's previously announced hole WT11-001 which cut 15.48m of 3.08 g/t gold and 94.75 g/t silver.