At a conference in Manhattan, the American Stock Exchange (AMEX) demonstrated an interest in the yellow metal by introducing a new index of selected gold mining companies.
Known as Gold BUGS, the index includes 13 companies that do not hedge away their exposure to fluctuations in the gold price beyond 18 months.
Gary Gastineau, AMEX’s senior vice-president of new product development, said it is the only index available that acknowledges the effects of hedging on gold stock pricing.
“We believe that by including only companies with limited hedging policies, we are offering investors a better product for participating in gold price fluctuations,” he said in a luncheon address.
The new index trades under the symbol HUI.
Recently, the AMEX has been courting mining companies to switch their American listings. The first such change was announced in late May, when Rea Gold switched from the National Association of Securities Dealers Automated Quotation (NASDAQ) and began trading its shares on AMEX under the symbol REO.
Currently the AMEX lists about 20 mining companies, with a combined market capitalization of US$5.5 billion. It is estimated this accounts for 3.6% of the total of the AMEX.
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