Tag Archives: GDXJ

With all the interest in physical gold, silver and other commodities these days, and the large/mid-cap companies who mine the metals and the juniors who are exploring for them, it begs the question: “Why is no one writing about the merits of investing in the long-term warrants associated with a few of those companies?” Merits? Absolutely! Here is a primer on virtually all that you need to know about warrants and how to invest in them for major profits.

Precious metals royalty and streaming companies represent a very interesting sub-industry of the precious metals mining industry. To track the overall performance of the whole sub-industry, I created a capitalization-weighted index (the Precious Metals Royalty and Streaming Index) consisting of 15 companies.

If history repeats itself (with respect to Fed actions) then a rebound should begin in the GDXJ after the hike and last for a few months. The initial target would be the 200-day moving average ($22) followed by the October high (mid $23) and the 400-day moving average ($27).

After falling out of favor for so long, gold stocks are overdue to soar this year. The smart contrarians buying in early before the rest of the herd starts understanding gold stocks’ vast upside potential are going to earn fortunes. This article looks at the performance of the HUI, XAU, GDX & GDXJ over the last few months of decline to their lows and their most recent ascent.

There is compelling evidence that the gold mining sector is either at, or very close to, a major bottom, and the chances are high that the sector will rally strongly this year. Here's why.

Look for huge volume and accumulation in gold and silver over the next few weeks and in some high quality junior mining stocks. Negative capitulation followed by strong accumulation could be the indicator that the smart money expects gold and silver to bottom. The question for many is when this will occur. It should be soon as this correction in the junior miners has been one of the worst and longest in decades providing possibly a once in a generation buying opportunity.

Gold has been mired in a descending triangle over the past year or so. From a technical perspective, such triangles are likely to be continuation patterns. Gold fundamentals have recently worsened a bit with the most obvious headwind being the continued strength in the U.S. dollar, but this isn’t the only indicator that has turned more bearish lately. This article is an update of the indicators we follow.

Precious metals shares are breaking out again after a brief consolidation. It’s time to channel your inner Old Turkey, realize this is a bull market and act accordingly.

We are of the opinion that the miners and explorers (and their indexes GDX and GDXJ} should be "swapped" for the precious metals - gold, silver, and their proxies (GLD and SLV). This way investors will maintain exposure to precious metals while reducing their exposure to the more volatile miners as some of the share dilution and recent investor exuberance play out - and at least hedge themselves if the price continues to rise.

The charts below make it crystal clear that we are on the verge of a major bull market advance across the PM sector. While these charts are for the Market Vectors Junior Gold Miners ETF, what happens to the GDXJ has major implications for the whole sector, for the simple reason that it is not going up without the entire sector going up too.