Gold ETFs Shine Brighter Than the Metal Itself, Surging Up to 37%
Gold hit a historic high in this year’s stock market trading, breaking the record by surpassing $2,500 per troy ounce for the first time, following a 21.35% rise so far this year.
Following suit, gold ETFs traded on American exchanges have outpaced the precious metal itself. A study by Quantum Finance reveals that these ETFs saw gains exceeding 37%, with none of the 11 funds underperforming the metal itself.
The returns, calculated in dollars, translate into even larger gains against the Brazilian real due to the strengthening of the U.S. dollar, which appreciated 16% against the local currency.
Investment analysts note that gold ETFs are leveraged funds, which means they take on higher risk to enhance returns. This leverage partly explains their superior performance compared to the raw commodity.
Here’s a breakdown of the returns for various gold ETFs as of August 30, 2024:
- DIREXION DAILY GOLD MINERS INDEX BULL 2X SHARES – NUGT: 37.31%
- DIREXION DAILY JUNIOR GOLD MINERS INDEX BULL 2X SHARES – JNUG: 28.68%
- GLOBAL X GOLD EXPLORERS ETF – GOEX: 24.18%
- ISHARES MSCI GLOBAL GOLD MINERS ETF—RING: 32.26%
- MICROSECTORS GOLD MINERS 3X LEVERAGED ETN–GGDXU: 31.15%
- SPROTT GOLD MINERS ETF—SGDM: 21.91%
- SPROTT JUNIOR GOLD MINERS ETF—SGDJ: 18.15%
- THEMES GOLD MINERS ETF – AUMI: 28.19%
- US GLOBAL GO GOLD AND PRECIOUS METAL MINERS ETF—GOAU:** 20.72%
- VANECK GOLD MINERS ETF—GDX: 24.54%
- VANECK JUNIOR GOLD MINERS ETF – GDXJ: 21.26%
- Gold—COMEX: 21.35%
Looking ahead, impending U.S. interest rate cuts are expected to drive more capital into the gold market, according to Goldman Sachs.
The bank’s analysts remain optimistic about gold, setting a target price of $2,700 per troy ounce by early 2025—a 15% increase from the current price of $2,545 per ounce.
Gold continues to be the favored hedge against geopolitical and financial risks, buoyed by the upcoming Federal Reserve rate cuts and ongoing purchases by central banks from emerging markets, as highlighted by Goldman Sachs analysts.
This backdrop underscores the enduring appeal and strategic importance of gold investments amidst global uncertainties.
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Commodities — Live Market Board
-0.03%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| GOLD | 4,461 | +1.78% | +33.20% | 4,383 | 4,503 | 4,421 | 139,824 |
| SILVER | 65.59 | +1.26% | +73.05% | 64.77 | 66.98 | 64.81 | 46,406 |
| BRENT | 88.88 | -0.03% | +34.42% | 88.91 | 90.07 | 88.12 | 29,713 |
| WTI | 83.11 | -0.11% | +31.57% | 83.20 | 84.35 | 82.40 | 166,848 |
| COPPER | 6.61 | +0.03% | +46.70% | 6.61 | 6.71 | 6.61 | 39,543 |
| LITHIUM | 75.20 | +1.47% | +62.95% | 74.11 | 75.80 | 75.08 | 89,275 |
| IRON ORE | 161.91 | — | +58.10% | 161.91 | 161.91 | 1 | |
| SOY | 1,184 | +3.20% | +17.05% | 1,148 | 1,199 | 1,168 | 163,179 |
| CORN | 480.50 | +10.02% | +29.34% | 436.75 | 480.75 | 459.50 | 341,248 |
| WHEAT | 655.00 | +3.93% | +29.70% | 630.25 | 657.75 | 631.50 | 128,793 |
| COFFEE | 317.25 | -5.51% | +0.67% | 335.75 | 321.20 | 313.55 | 21,747 |
| SUGAR | 16.43 | -1.79% | -3.01% | 16.73 | 17.11 | 16.22 | 171,992 |
| COCOA | 5,719 | +3.18% | -34.96% | 5,543 | 5,779 | 5,574 | 26,773 |
| ORANGE JUICE | 138.55 | -0.47% | -45.38% | 139.20 | 141.05 | 137.50 | 703 |
| COTTON | 85.03 | +2.33% | +26.78% | 83.09 | 82.90 | 81.96 | 16,546 |
| BEEF | 223.60 | -3.93% | -5.18% | 232.75 | 226.40 | 223.00 | 16,126 |
| CATTLE | 339.10 | -3.16% | -1.82% | 350.17 | 345.50 | 338.60 | 10,164 |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
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