GLD - GDXJ: Another Rally Another Tease Stop Digging Here
2024-03-14 12:34:06 ET
Summary
- GDXJ (VanEck Junior Gold Miners) is a gold ETF that tracks small-cap companies in the mining industry, but it is rated as a sell.
- Junior miners have downside risks such as rare large deposit discoveries, high borrowing costs, and less capital available.
- GDXJ has had a nice recent price spike with gold metal, but it doesn't stand out as a high return vs. risk potential looking forward.
Gold and gold stocks may owe part of their recent price appreciation to the new kid on the "anti-US Dollar" block. Bitcoin's potential role as an alternate currency amid a seemingly insurmountable level of US government debt has helped stoke renewed interest in all things yellow metal. The price of gold surged to new highs and gold mining stocks have rallied....
GDXJ: Another Rally, Another Tease, Stop Digging Here