EQX - As Gold Rises VanEck Junior Gold Miners Could Outperform
- In 2021, gold is expected to continue performing well given additional fiscal stimulus in the US and the rest of the world, denting confidence for fiat currencies.
- Technically, gold appears to be forming a base and may rebound from here.
- Gold stocks tend to outperform gold in a rebound, and GDXJ provides more upside than GDX given the former's higher beta and volatility.
- Over the longer term, GDXJ may provide better upside than GDX given the former's cheaper valuation ratios on P/S, P/B and EV/EBITDA.
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As Gold Rises, VanEck Junior Gold Miners Could Outperform