This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Large-Cap Miners With Leverage

NEW YORK ( TheStreet ) -- It may not be a three-to-one leverage, but large-cap miners Kinross (KGC - Get Report), Barrick (ABX - Get Report) and Newmont (NEM - Get Report) can offer investors leverage on a forward-looking basis. This according to Adam Graf, director of emerging miners for Dahlman Rose & Co.

Gold's spot price year to date has risen 0.9% and the popular backed ETF, SPDR Gold Shares (GLD) has moved with it up 0.62%. By the three-to-one leverage standard, Market Vectors Gold Miners ETF (GDX), a basket of large cap miners, should be up nearly 3% year to date. Instead the index is down 5.08%.

Out of the top 10 miners in the GDX only two stocks, AngloGold Ashanti (AU) and Agnico Eagle (AEM), have positive returns in 2010. With gold prices trading around $1,100 an ounce, mining stocks should be offering investors some kind of operating leverage.

In the interview that follows, Graf offers his take on the notion that mining stocks typically offer a three-to-one leverage to gold's spot price. He also names a few miners that still offer the most forward-looking leverage.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GDX $13.71 -0.94%
GLD $102.46 -0.47%
ABX $7.38 0.27%
KGC $1.93 0.00%
NG $3.59 -0.28%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs