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Question asked 31/01/2026

EVN

Hi. The Wednesday report showed and commented how EVN and the gold price track each other closely. If this is the case is it not safer to just buy a gold tracking ETF and eliminate any company specific risk? Cheers

Answer

Hi Alain,

Holding an ETF such as the VanEck Gold Miners ETF (GDX) certainly does iron out the volatility through reporting season whereas stocks can hit or miss as stock/company operational risks increase but an ETF does also cost money to hold, in the case of the GDX its 0.53% per annum. Below shows the diverse moves across seven ASX gold miners over the last 12-months:

Regis Resources (RRL) +188%, Newmont (NEM) +175%, Evolution Mining (EVN) +172%, Vault Minerals (VAU) +163%, Emerald Resources (EMR) +114%, Northern Star (NST) +71%, and Bellevue Gold (BGL) +69%.

We believe both stocks & ETFs have their place in an investor’s portfolio depending on their risk appetite, objectives etc. For example, stock investors can tailor exposure through the likes of hedged/unhedged producers, high/low cost, established/explorers etc whereas an ETF is likely to deliver smoother, lower risk and often, lower returns.

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VaneEck Gold Miners ETF (GDX)

LAST UPDATED 28/01/2026 13:21

Latest Reports

Weekend report 31/01/2026

Weekend Q&A: Gold plunges the most since the GFC after Trump announces his Fed pick

The ASX 200 ended the short week up just +0.2%, but the volatility over the 4-days was more than many months! The energy and materials sectors were again the top performers, but Friday's savage 100-point reversal dented many of the previous high flyers, while the rate-sensitive consumer discretionary and tech sectors fought over the wooden spoon, again. This week is likely to be a very different market following the confirmed nomination of Kevin Warsh to be the next Federal Reserve Chair, taking over from Jerome Powell. Warsh is seen as more inclined than other finalists to guard against rising price pressures, a stance that would translate into monetary policy that is supportive of the US dollar. That saw the $US push up nearly 1% sending Gold & other commodities sharply lower. Gold experienced a top-to-bottom $US900/oz plunge overnight which will have the miners on the back foot on Monday,

Afternoon report 30/01/2026

The Match Out: Hot money flips out of resources as Gold pulls back, ASX +1.8% for the month

The ASX reversed earlier gains in the final session of the month, dragged lower by an accelerating sell-off in gold and other resource stocks as hot money headed for the exits. The rally in this part of the market has been impressive, however when stocks and commodities start to go parabolic, aggressive, short, sharp pullbacks become more likely, and we’ve certainly seen that play out today. Using BHP as the proxy for the sector, the stock hit a new all-time high above $52 early on, before reversing to close lower. Golds were hit harder with Newmont (NEM) trading at $190 yesterday before closing ~$173 today.