Time to buy junior gold mining ETFs?

By Eric Dutram
NASDAQ, from Zacks.com

Although gold prices are still down from a one year look, the yellow metal has been surging back in recent months. Over the past three months the precious metal has risen by about 7% and is now beating out-just barely-broad market returns over the YTD time period, suggesting that gold investing could once again be in focus.

Unsurprisingly, this trend has also carried over in the mining segments of the precious metal world as well with the top gold mining ETFs like GDX and GGGG seeing strong gains in the trailing three month period.

Both are easily beating out the S&P 500 in the time frame, helping to eat into the significant level of underperformance that both had seen against the key benchmark since the start of the year (read The Comprehensive Guide to Gold ETF Investing).

Yet beyond these large cap focused mining ETFs, investors have a few more volatile gold mining ETF options that could also be interesting picks in this environment. That is because both of these choices invest in small cap firms or those that are exploring for-but are not producing-gold and are much more hit-or-miss depending on broad economic conditions.

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