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Junior Gold Miner ETF Performs Better Than Bullion

Written By Brian Hicks

Posted September 27, 2012

Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ) will likely post a gain of roughly 30 percent for the third quarter. It’ll also likely outperform Market Vectors Gold Miners ETF (NYSEArca: GDX), which has risen by about 20 percent in the past three months. So far, SPDR Gold Shares (NYSEArca: GLD), the biggest bullion-backed ETF, has posted gains of about 13 percent.

Over September, investors have put in a total of $306.7 million toward Market Vectors Gold Miners and $181.9 million toward Market Vectors Junior Gold Miners. Junior miner investments have been surpassing bullion since August.

Investors have been turning heavily to gold and miner ETFs based both on global economic instability and recent stimulus actions undertaken by central banks.

In fact, Market Vectors Gold Miners has actually outdone Apple (NASDAQ: AAPL) by almost 10 percentage points over the last month.

ETF Trends quotes Christian Magoon at

“This is especially surprising given that Apple’s iPhone 5 was revealed this month and analysts expect it to be the most purchased Apple phone of all time,” Magoon writes. “So how has a gold miners ETF, which owns companies focused on gold mining activities across the globe, outdistanced Apple by so much? The answer is that QE3 is more powerful than iPhone 5.”