In 2015, gold ETFs witnessed outflows of 133.4 tons compared with 185.1 tons in 2014. Overall investment demand in gold went up 8% year over year in 2015 as modest growth in bar and coin demand countered smaller outflows from ETFs. Even though outflows from gold backed ETFs persisted in the year, it slowed down from prior years.
           
This year saw a turnaround with gold regaining its status as a safe haven asset amid global growth concerns and continued bearishness in the stock market. Gold prices have been trending up lately, making it the best performing commodity this year after three successive years of losses. Prices of the yellow metal jumped above the psychologically important level of $1,200 an ounce as investors flocked for safety. (Read: Ride the Gold Rally with Best Stocks & ETFs)
 
As chances of a series of rate hikes become slimmer this year, the demand for gold elevates. The metal produces no income but relies on price appreciation to attract investors. Gold prices will also get support from retail demand in the latter part of the year given that it is a seasonally strong period in countries like India and China. India is currently the world’s top gold consumer and lower prices, easing of import norms and better prospects for economic growth will pave the way for rising demand. Moreover, demand from the central bank will support prices as this sector has been remarkably consistent.
 
Another factor that will eventually be a tailwind for gold is that the supply of the precious metal has already attained peak levels as per reports. Lower gold prices in the past few years and cost pressure had restricted the ability of gold producers to invest in new projects. (Read: Where do Gold Mining ETFs Go from Here)

Production of gold is likely to decline by 3% in 2016, thus ending a seven-year stint of rising output. Lower mined gold supply could help prices navigate north. A positive outlook for the industry reinforced by expectations of earnings growth eventually in 2016 makes a good case for the gold mining industry and its related ETFs.  (Read: Best Ways to Invest in Gold Now—Metal or Miners ETFs)
 
ETFs to Tap the Sector
 
Below, we highlight the ETFs in this sector in greater detail for those seeking opportunities to make a gold-mining ETF play at this time.
 
Market Vectors Gold Miners ETF (GDX)

GDX has assets under management of $6.26 billion and a trading volume of roughly 99,966,961 shares a day. The fund charges an expense ratio of 53 basis points a year with a dividend yield of 0.62%.
 
The ETF was formed on May 15, 2006, to track the NYSE Arca Gold Miners Index. The Index provides exposure to publicly traded companies worldwide that are involved primarily in gold mining, representing a diversified blend of small, mid and large-capitalization stocks. The fund, has invested 54% of the asset base in the top 10 holdings.