$Microsectors Gold Miners 3x Leveraged ETN(GDXU.US) rose slightly, $Pro Ultr GLD(UGL.US) also rose slightly, while $CHIFENG GOLD(06693.HK) fell by nearly two points.
Leveraged gold exposure is rising, while actual mining stocks are falling; this divergence has been appearing more frequently recently. Is there a problem with the cost side of Hong Kong stock market mining companies, or is capital simply abandoning individual stocks and using ETFs to gain direct gold exposure? The answer is likely the latter—capital flows in leveraged products have been 抢 ing the position of mining stocks for the past two years, diluting the beta of individual stocks.
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