Mid-Tier Gold Miners Thrive Amidst Q2 Price Drop
Mid-tier gold miners have reported spectacular quarterly results, making gold stocks 'screaming buys' according to recent data. Despite gold prices plummeting in Q2, smaller gold miners still earned near-record profits due to high average gold prices, which soared 37.3% year-over-year to $4,512.
The VanEck Junior Gold Miners ETF (GDXJ) is the leading mid-tier gold-stock benchmark and has been affected by this trend. Its top holdings are dominated by mid-tiers and juniors, who have seen their market capitalizations increase due to new mines or major expansions going live.
According to a recent analysis of GDXJ's 25 largest component stocks, these gold miners have bucked the trend of gold prices crashing in Q2. Their average production fell by only 6.9% year-over-year, with mid-tiers producing 2,508k ounces of gold.