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5 Mining ETFs To Watch For 2022

Top mining ETFs for 2022
The post 5 Mining ETFs To Watch For 2022 appeared first on Gold Stocks to Buy, Picks, News and Information | GoldStocks.com.

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New year, new you, right? With 2021 closing its books, we look ahead to 2022 and what trends could prevail in the stock market. The last 12 months have been full of uncertainty stemming from the lasting pandemic of 2020. Reopening efforts remain a core point of focus. Meanwhile, economic expansion continues to take shape globally.

You also can’t ignore emerging trends in renewable energy and alternatives, including the “green revolution” and the rise of the electric vehicle industry. With that has come a slew of new companies to follow and stocks to watch. But what if you’re looking for a more passive way to invest?


Gold Stocks 30-Second Article Overview

  • Some traders wawnt to take a more passive approach to the stock market
  • Full time jobs, families, etc. can be some of the reasons why
  • In many cases, Exchange Traded Funds (ETFs) cane be a way to achieve your goals as an investor
  • Today we look at some of the top mining ETFs for 2022

Those looking for exposure to the stock market but don’t want to “pick stocks” tend to lean toward Exchange Traded Funds or ETFs. These can be traded just like stocks. But instead of investing in a particular company, you’re buying into a basket of stocks that fit a specific theme. The S&P 500 ETF (NYSE: SPY) is one popular example of an actively traded ETF. Today, we’ll look at some of the top mining ETFs for 2022. Best of all, there may be some unexpected names to know heading into the New Year.

Top Mining ETFs For 2022

  1. VanEck Gold Miners ETF (NYSEARCA: GDX)
  2. VanEck Junior Gold Miners ETF (NYSEARCA: GDXJ)
  3. iShares Silver Trust (NYSEARCA: SLV)
  4. Global X Blockchain ETF (NASDAQ: BKCH)
  5. Bitwise Crypto Industry Innovators ETF (NYSEARCA: BITQ)

1. VanEck Gold Miners ETF (NYSEARCA: GDX)

If you’re a traditionalist and expect rising rates and inflation in 2022, then precious metals are likely part of your strategy. According to VanEck, its Gold Miners ETF “seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Gold Miners Index (GDMNTR), which is intended to track the overall performance of companies involved in the gold mining industry.”

Read: Best Copper Stocks To Watch For January 2022

With that, investors gain access to some of the largest gold stocks in the market. Among the top holdings of the ETF, the ten most significant positions make up more than 60% of the weight in the ETF. They include:

Company Percentage Of ETF
NEWMONT CORP (NEM) 13.73
BARRICK GOLD CORP (GOLD) 10.57
FRANCO-NEVADA CORP (FNV) 8.22
WHEATON PRECIOUS METALS CORP (WPM) 5.89
NEWCREST MINING LTD (NCMGY) 4.64
AGNICO EAGLE MINES LTD (AEM) 4.04
KIRKLAND LAKE GOLD LTD (KL) 3.97
GOLD FIELDS LTD (GFI) 3.82
ANGLOGOLD ASHANTI LTD (AU) 3.31
NORTHERN STAR RESOURCES LTD (NST) 2.93
Holdings A/O 11/30/2021

VanEck Junior Gold Miners ETF (NYSEARCA: GDXJ)

Similar to the GDX ETF, VanEck’s GDXJ invests in gold miners. But in this case, it focuses on smaller companies. Under similar expectations next year, if you’re looking at the GDX, the GDXJ may act as the more volatile cousin to the GDX. It can be great during bull markets but unpredictable during bearish trends in precious metals pricing.

According to VanEck, the Junior Gold Miners ETF “seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS®Global Junior Gold Miners Index (MVGDXJTR), which is intended to track the overall performance of small-capitalization companies that are involved primarily in the mining for gold and/or silver.”

Unlike the GDX, GDXJ focuses on smaller miners. The top 10 mining stocks in the ETF account for roughly 37% of the total weight in the fund and include:

Company Percentage Of ETF
PAN AMERICAN SILVER CORP (PAAS) 5.31
EVOLUTION MINING LTD (CAHPF) 4.47
YAMANA GOLD INC (AUY) 4.01
ENDEAVOUR MINING CORP (EDVMF) 3.93
MERDEKA COPPER GOLD TBK PT 3.76
SSR MINING INC (SSRM) 3.67
B2GOLD CORP (BTG) 3.46
ALAMOS GOLD INC (AGI) 2.93
FIRST MAJESTIC SILVER CORP (AG) 2.90
PRETIUM RESOURCES INC (PVG) 2.60
Holdings A/O 11/30/2021

iShares Silver Trust (NYSEARCA: SLV)

If you’re looking to gain more exposure to silver stocks specifically, iShares has its Silver Trust ETF. According to the fund and simply put, “The iShares® Silver Trust (the ‘Trust’) seeks to reflect generally the performance of the price of silver.”

Overall returns for the SLV haven’t been spectacular over the last year. But on a 3-year term, the ETF shows a move of roughly 14%. Unlike other ETFs on this list, the SLV doesn’t invest in a basket of stocks. Instead, it gives investors direct access to spot silver prices. Essentially the SLV physically holds the metal in vaults. So depending on the London Silver Fix price, less expenses, you can gauge what an investment in the SLV might return.

Global X Blockchain ETF (NASDAQ: BKCH)

Now we get into the “new age” of mining stocks. Cryptocurrency is, no doubt, becoming mainstream. Investors are looking to gain exposure to digital assets like Bitcoin, Ethereum, and others. According to Global X by Mirae Asset, The Blockchain ETF “seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain & digital asset transactions, blockchain applications, blockchain & digital asset hardware, and blockchain & digital asset integration.”

Read: Top Mining Stocks To Watch Today As Growth Stocks Take a Breather

Some of these companies include Bitcoin and cryptocurrency mining operations. With only $108.73 million in net assets, BKCH is quite a small ETF. All the same, it has offered a way for investors to gain broad exposure to the emergence of DeFi. The top 10 stocks in the BKCH ETF make up more than 60% of its weight as of the timing of this article and include:

Company Percentage Of ETF
COINBASE (COIN) 12.90
RIOT BLOCKCHAIN (RIOT) 11.89
MARATHON DIGITAL (MARA) 9.91
VOYAGER DIGITAL LTD (VYGVF) 7.46
NORTHERN DATA AG 7.18
HUT 8 MINING CORP (HUT) 6.27
GALAXY DIGITAL HOLDINGS (BRPHF) 5.58
BITFARMS LTD (BITF) 5.01
HIVE BLOCKCHAIN (HIVE) 4.45
CANAAN INC (CAN) 4.10
Holdings A/O 12/30/2021

Bitwise Crypto Industry Innovators ETF (NYSEARCA: BITQ)

Similar to Global X’s Blockchain ETF, the Bitwise Crypto Industry Innovators ETF is another way to gain exposure to “new world” mining. According to the fund, “BITQ tracks an index designed with Bitwise’s industry expertise to identify the pioneering companies that generate the majority of their revenue from their crypto business activities.”

The top 10 holdings in the BITQ ETF account for roughly 60% of its overall waiting and include:

Company Percentage Of ETF
COINBASE GLOBAL INC (COIN) 10.68
SILVERGATE CAPITAL (SI) 10.21
MICROSTRATEGY (MSTR) 9.85
VOYAGER DIGITAL (VYGVF) 5.03
GALAXY DIGITAL HOLDINGS LTD (BRPHF) 4.69
MARATHON DIGITAL HOLDINGS INC (MARA) 4.11
HUT 8 MINING (HUT) 4.10
RIOT BLOCKCHAIN INC (RIOT) 4.08
NORTHERN DATA 3.96
HIVE BLOCKCHAIN TECH (HIVE) 3.85
Holdings A/O 12/30/2021

Best Mining Stock ETFs For 2022

ETFs can be a great way to invest in the stock market, depending on your strategy. While they won’t typically offer the same dramatic or explosive upside as individual stocks, they are more diversified. These are just a handful of mining ETFs for 2022 to watch as the new year begins.

The post 5 Mining ETFs To Watch For 2022 appeared first on Gold Stocks to Buy, Picks, News and Information | GoldStocks.com.

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Author: Joe Samuel

Economics

Lacy Hunt: Negative Real Rates Are A Strong Recession Warning

Lacy Hunt: Negative Real Rates Are A Strong Recession Warning

Authored by Mike Shedlock via MishTalk.com,

In his 4th Quarter Review and Outlook,…

Lacy Hunt: Negative Real Rates Are A Strong Recession Warning

Authored by Mike Shedlock via MishTalk.com,

In his 4th Quarter Review and Outlook, Lacy provides some interesting charts on negative real rates and recessions.

Please consider the Hoisington Management Quarterly Review and Outlook Fourth Quarter 2021Emphasis Mine

Real Treasury Bond Yields

Real Treasury bond yields fell into deeply negative territory in 2021. In elementary economic models, this event, taken in isolation, would qualify as a plus for economic growth in 2022 and would be consistent with the strength indicated by fourth quarter 2021 tracking models.

Lacy a different view however. His analysis shows that negative real yields are associated with recessions. 

Debt overhang and demographics make the matter worse.

History

Since 1870, the starting point of reliable data, only 24 full yearly averages were negative, or just 16% of the 152 readings over this time span.

Detailed parsing of the series reveals that 12 of those occurrences fell in the spans from 1914 to 1920 and 1939 to 1953, both of which were dominated by major military engagements and their subsequent demobilization – World Wars I and II and the Korean War.

Excluding the 1914-20 and the 1939-53 periods from the post 1870 sample still leaves a robust sample of 130 readings. During this lengthy span, cyclical and secular economic conditions resulted in a negative yearly average for real Treasury bond yields twelve times, or just 8% of the time. In the eleven cases prior to 2021, nine of the negative real yield periods coincided with recessions – 1902-03, 1907, 1910, 1912, 1937, 1974-75, and 1980.

Real long maturity yields were negative in 1934, which while not a recession year, happened during the horrific conditions of the Great Depression (1929-1939). In only one case, 1979, does the negative real yield happen during an economic expansion when the economy is not in a highly depressed state.

Debt Overhangs and Real Interest Rates

The level of indebtedness of the economy is another of the critical moving parts in assessing future economic growth. Based on empirical evidence, theory and peer reviewed scholarly research, the massive secular increase in debt levels relative to economic activity has undermined economic growth, which has in turn, served to force real long-term Treasury yields lower. This pattern has been evident in both the United States and the more heavily indebted Japanese and European economies.

Real 10-Year Government Bond Yields 

Economic research provides additional insight and evidence as to why interest rates fall to low levels and then remain in an extended state of depression in times of extreme over-indebtedness of the government sector. While differing in purpose and scope, research has documented that extremely high levels of governmental indebtedness suppress real per capita GDP. In the distant past, debt financed government spending may have been preceded by stronger sustained economic performance, but that is no longer the case.

When governments accelerate debt over a certain level to improve faltering economic conditions, it actually slows economic activity. While governmental action may be required for political reasons, governments would be better off to admit that traditional tools would only serve to compound existing problems. For a restless constituency calling for quick answers to economic distress and where inaction would be likened to an uncaring and insensitive attitude, this is a virtually impossible task.

Carmen Reinhart, Vincent Reinhart and Kenneth Rogoff (which will be referred to as RR&R), in the Summer 2012 issue of the Journal of Economic Perspectives linked extreme sustained over indebtedness with the level of interest rates. In this publication of the American Economic Association, they identify 26 historical major public debt overhang episodes in 22 advanced economies, characterized by gross public debt/GDP ratios exceeding 90% for at least five years, a requirement that eliminates purely cyclical increases in debt as well as debt caused by wars. They found that the economic growth rate is reduced by slightly more than a third, compared when the debt metric is not met.

Persistent Global Weakness

Advanced Economies (AD)

In 2021, the Japanese, Euro Area and Chinese economies, in comparative terms, underperformed the U.S. economy. This pattern should continue this year. Due to more massive debt overhangs and poorer demographics, real GDP in Japan and the Euro Area in the third quarter of 2021 was still below the pre-pandemic level of 2019. The U.S. in this time period managed to eke out a small gain. The dispersion between the U.S., on the one hand, and China and Japan, on the other hand, may be even greater. Scholarly forensic evaluations have found substantial over-reporting of GDP growth in China and now, similar problems have been revealed in Japan.

Prime Minister Fumio Kishida said on December 15, 2021, that overstated construction orders had the effect of inflating the country’s economic growth figures for years. Consequently, the marginal revenue product of debt is even lower than reported therefore so is the velocity of money for both Japan and China. Interestingly, Bloomberg syndicated columnist and veteran Wall Street research director Richard Cookson makes a strong case that “China looks a lot like Japan did in the 1980s.”

Emerging Market Economies (EM)

The sharp surge in inflation in 2021 has resulted in far greater damage to the EM economies than the U.S. for three reasons. First, a much higher proportion of household budgets are allocated to necessities than in the United States since real per capita income levels are much lower than in the U.S. Second, numerous EM central banks increased interest rates in 2021.

Another problem emerges as most of the EM debt is denominated in dollars. When EM currencies slump as in 2021, the external costs of servicing and amortizing debt add an additional burden on their borrowers.

Growth Obstacles

In 2022, several headwinds will weigh on the U.S. economy. These include negative real interest rates combined with a massive debt overhang, poor domestic and global demographics, and a foreign sector that will drain growth from the domestic economy. The EM and AD economies will both serve to be a restraint on U.S. growth this year and perhaps significantly longer. The negative real interest rates signal that capital is being destroyed and with it the incentive to plough funds into physical investment.

Demographics continue to stagnate in the United States and throughout the world. U.S. population growth increased a mere 0.1% in the 12 months ended July 1, 2021. This was the slimmest rise since our nation was founded in the 18th century, along with two other firsts: (1) the natural increase in population was less than the net immigration, and (2) the increase in population was less than one million, the first time since 1937. The birth rate also dropped again.

Inflation

Inflation has been one of the most widely reported and discussed economic factors in the past year. Surging energy, rents, building materials, automotive, food and supply disruptions have boosted the year-over-year rise in the inflation rate to the fastest pace in decades. While some see this increase as a good economic sign, its increase actually had the effect of reducing real earnings by 2%. Even though unemployment fell in 2021, consumers became more alarmed by the drop in real wages according to surveys.

With money growth likely to slow even more sharply in response to tapering by the FOMC, the velocity of money in a major downward trend, coupled with increased global over-indebtedness, poor demographics and other headwinds at work, the faster observed inflation of last year should unwind noticeably in 2022.

Due to poor economic conditions in major overseas economies, 10- and 30-year government bond yields in Japan, Germany, France, and many other European countries are much lower than in the United States. Foreign investors will continue to be attracted to long-term U.S. Treasury bond yields. Investment in Treasury bonds should also have further appeal to domestic investors, as economic growth disappoints and inflation recedes in 2022.

Thanks to Lacy Hunt 

Thanks again to Lacy Hunt for another excellent Hoisington quarterly review. The above snips are just a small portion of the full article. 

As of this writing, the article is not yet posted for public viewing but should be available at the top link soon.

When Does the Sizzling Economy Hit a Recession Brick Wall?

I addressed many of the same points on January 17 in When Does the Sizzling Economy Hit a Recession Brick Wall?

I discuss productivity, demographics, and unproductive debt.

Something Happened

Something has happened in the last 30 years, which is different from the past,” says Minneapolis Fed president Neel Kashkari.

Yes it has and the Fed is clueless as to what it is.

The answer is unproductive debt is a huge drag on the economy. And the Fed needs to keep interest rates low to support that debt. 

When Does Recession Hit?

If the Fed does get in three rate hikes in 2022, then 2023 or 2024. And it may not even take three hikes.

Also, please see China’ Central Bank Cuts Interest Rates As Consumer Spending Dives

Few believe China GDP statistics.

China posts a GDP target and generally hits it despite questionable economic reports, electrical use, etc., and with a property sector implosion.

Slowing Global Economy

China did not decoupled from the global economy in 2007 and the US won’t in 2022.

For discussion, please see US GDP Forecasts Stumble Then Take a Dive After Retail Sales Data.

Finally, please see The Fed Expects 6 Rate Hikes By End of 2023 – I Don’t and You Shouldn’t Either

*  *  *

Like these reports? If so, please Subscribe to MishTalk Email Alerts.

Tyler Durden
Thu, 01/20/2022 – 19:10



Author: Tyler Durden

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Economics

Target CEO Says Consumers To Shop Less, Stay Home Amid Inflationary Storm

Target CEO Says Consumers To Shop Less, Stay Home Amid Inflationary Storm

Consumer prices soared the most in 40 years in December, a stunning…

Target CEO Says Consumers To Shop Less, Stay Home Amid Inflationary Storm

Consumer prices soared the most in 40 years in December, a stunning 7% from a year earlier that is crushing real wage gains and sending President Biden’s polling numbers to a new record low. The Federal Reserve is expected to embark on an inflation-crushing mission with the first-rate hike expected in March to tame inflation.

According to Target’s top executive, high inflation eating into wage gains is expected to directly impact US consumers who will be forced to drive less, eat at home, and reduce their shopping habits. 

Chief Executive Officer Brian Cornell told attendees at a National Retail Federation event in New York on Sunday that high inflation will derail consumer spending patterns. Many will resort to cheaper generic-brand goods to save money. 

“Some of the historical ways consumers react to inflation will play out again in 2022,” Cornell said.

He noted consumers would “drive fewer miles, and you’ll consolidate the number of times and locations where you shop. You’ll probably spend a little more eating at home versus your favorite restaurant, and you might make some trade-offs between a national brand and an own brand.”

Compared to the last two years of stimulus-fueled retail spending, Cornell expects spending patterns to change. He said a lot about the consumer would be understood in the next “60, 90, 120 days” in adapting to the high inflation environment. 

As part of the rapid recovery, fueled by trillions of dollars in monetary and fiscal aid, prices for cars, gas, food, and furniture rose sharply in 2021. As consumers increased spending, supply chains became snarled, and prices increased further. 

In the new year, US inflation pressures show very little easing, and some economists predict the peak could be nearing. The high inflation problem has led rate markets to price in 4 rate hikes by December, with the first live meeting expected in March. 

Many consumers have never seen anything like this because they weren’t around in the 1970s and early 1980s of high inflation. It only took then-Fed Chair Paul Volcker to increase interest rates to double digits to tame inflation which sent the economy into a deep recession. 

High inflation has put Biden on the spot ahead of midterms. The latest polling data shows the president’s popularity sunk to a new low this week. 

Consumers feel the pinch around them, from the supermarket to the gas station. Cornell’s outlook for the consumer is gloomy, suggesting they might go in hibernation mode to weather the inflationary storm. 

Tyler Durden
Thu, 01/20/2022 – 18:50






Author: Tyler Durden

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Precious Metals

Oklahoma to Consider Holding Gold and Silver, Removing Income Taxes

Legislators in Oklahoma aim to protect state funds with physical gold and silver and remove capital gains taxes from gold and silver transactions  ?…

(Oklahoma City, Oklahoma — January 20, 2022) – An Oklahoma state representative introduced legislation today that would enable the State Treasurer to protect Sooner State funds from inflation and financial risk by holding physical gold and silver.

Introduced by Rep. Sean Roberts, HB 3681 would include physical gold and silver, owned directly, to the list of permissible investments that the State Treasurer can hold. Currently, Oklahoma money managers are largely relegated to investing in low-yield, dollar-denominated debt instruments.

Other than Ohio, no state is currently known to hold any precious metals, even as inflation and financial turmoil accelerate globally. Yes, Oklahoma’s own investment guidance prescribes safety of principal as a primary objective for investment of public funds.

“Currency debasement caused by federal monetary and fiscal policies has created an imminent risk of a substantial erosion in the value of Oklahoma’s investment holdings,” said Jp Cortez, policy director of the Sound Money Defense League.

“With most taxpayer funds currently held in debt paper carrying a negative real return, Oklahoma would be prudent to hedge today’s serious inflation risks with an allocation to the monetary metals.”

HB 3681 simply adds the authority to hold physical gold and silver bullion directly – and in a manner that does not assume the counterparty and default risks involved with other state holdings. Rep. Roberts’ measure does not grant authority to buy mining stocks, futures contracts, or other gold derivatives.

Additionally, HB 3681 prescribes safekeeping and storage requirements. The State Treasurer would hold the state’s bullion in a qualifying, insured, and independently audited depository, free of any encumbrances and physically segregated from other holdings.

Oklahoma has become a sound money hotspot, already earning 11th place on the 2021 Sound Money Index.

The Sooner State ended sales taxes on purchases of precious metals long ago. This week, Sen. Nathan Dahm introduced SB 1480, a measure to remove Oklahoma state income taxes from the exchange or sale of gold and silver sales.

The Sound Money Defense League and Money Metals Exchange strongly support these pro-sound money measures in Oklahoma and are actively working to ensure their success. Tennessee, MississippiKentucky, and Alabama are just a few of the other states fighting their own sound money battles in 2022.

      

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