Amex Gold Miners Index definition

The Amex Gold Miners Index is an index comprising highly capitalised companies operating in the gold mining industry

Amex Gold Miners Index definition                                 

What is Amex Gold Miners Index?

The Amex Gold Mining Index is known as the NYSE Arca Gold Miners Index (GDM). The index provides an overview of the performance of companies in the gold and silver mining industry. The index is composed of common stocks, American depositary receipts (ADRs) and global depositary receipts (GDRs). The company stocks included in the index are quoted on stock exchanges such as the NYSE, NASDAQ and Toronto Stock Exchange. The index contains 40-plus shares of highly capitalised companies, but the number of companies included can vary.

How companies get included in Amex

The Amex Gold Miners Index provides insight into the gold mining industry through the performance of gold mining companies with strong capitalisation. Inclusion in the index is particularly important for gold mining companies because it has a positive effect on their value. The entry into the index can increase their stock price, while the stock price of a company removed from the index may fall. 

The index is audited on a quarterly basis, when companies can be removed or new ones are added. For a company to be included in the index, it has to fulfill certain criteria:

  • The company should have a market capitalisation of at least $750m (£596m, €662m).

  • The average daily trading volume should be a minimum of 50,000 shares in the past three months.

  • The average trading value should be at least $1m per day during the past three months.

Why stocks can be excluded

Exclusion of stocks is performed if companies fail to meet the following criteria:

  • The market capitalisation falls below $450 million.

  • Average daily trading volume is less than 30,000 shares in the past three months.

  • The average daily trading value is below $600,000 for the past three months.

American depositary receipts (ADRs) and global depositary receipts (GDRs)

The index also includes ADRs and GDRs. An ADR is a tradable certificate issued by a US depositary bank; it denotes investment in a precise number of shares issued by a foreign company which is available on the domestic exchanges. The receipt provides access for domestic investors to invest in companies listed on markets abroad. 

A GDR is a similar instrument, with the difference being that it is traded on the European markets, while ADRs are traded on US markets. GDRs can be traded in various European markets, but not in the US.

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image