GDXJ - GDXJ And GDX: On The Cusp Of The Next Bull Cycle
2024-05-21 12:47:08 ET
Summary
- Gold miners have historically experienced explosive moves during gold bull runs, indicating potential for another outperformance.
- GDXJ has returned 35% since my first Buy coverage last year and has slightly outperformed Gold in this timeframe.
- Some top gold mining companies are showing positive growth in operational cash flow, suggesting they could become cash cows at current gold prices.
- Owning gold miner ETFs may not be a long-term hold due to the risks associated with miners, but risk can be managed through options strategies.
Recap of my previous coverage and the present
My last coverage of GDXJ was on Feb 18, 2023, which I initiated with a Buy. Since it has been more than a year since my previous coverage, I figured it was time for an update. The ETF has returned close to 35% since my last coverage which in itself serves as a good validation of my thesis. But I think we are still missing something. A big move . Whether that move will ever come is anyone's guess but there is a lot to learn from history here....
GDXJ And GDX: On The Cusp Of The Next Bull Cycle