Every once in a while you just have to get down in the hard data and have a good look.  As it’s Monday, today’s as good a day to jump right in, especially since a nice article about GDXJ’s components came out over the weekend. Back in January, we wrote about trading the junior miners, but since then we haven’t gone in-depth into GDXJ. That’s mostly because there hasn’t been a lot to write about.  Let’s look at the chart.

vaneck vectors chart

Source: Fidelity.com

One year ago – Dec 1, 2017, to be precise – GDXJ opened at 31.64.  Today it’s trading right around 27, and the highest it’s been in between was 36.08.  So nobody’s getting rich off this thing unless they’ve truly mastered the art of very short-term trading.  GLD opened at 120.94 on 12/1/2017 and is in the low 116’s this morning, so it’s been languishing too.  And with zero dividends from GLD and just one-point-one cents from GDXJ over the past year, there’s not a lot of incentive for a traditional buy-and-hold strategy.

The Gold Junior Miners Fundamental Approach

 So how does one go about making any money in the gold junior miners?  Well, one way is the good old-fashioned fundamental approach. You follow the earnings and production reports, put together a spreadsheet, and compare away to find the best value buys in the sector.  Fortunately, someone’s already done that work for you and it’s published here.  It’s up to you to figure out which are the best buys – and you have to be ready to hold for some time, as there’s no immediate jump in the gold market insight.
Besides the details of the spreadsheets, the important thing to note is that GDXJ doesn’t really represent the “real” junior miners anymore.  It hasn’t for some time as it’s crept up into “medium miners” territory.  And one hold in GDXJ is an outright senior miner by any measure.  But as the article points out, GDXJ does represent “extreme value” at this point – it’s only a matter of when the market catches up to it.
Signed, The Gold Enthusiast
DISCLAIMER: The author is long NUGT and JNUG which are closely related to GDX and GDXJ.  These positions are too small to affect the market in any way. The author has no plans to trade these positions over the next 72 hours.

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

Top Stories on StockNews.com

NYSE: CMG | Chipotle Mexican Grill, Inc. Common Stock News, Ratings, and Charts

Chipotle (CMG) reports earnings, tops expectations

The chain’s stock has soared 63% so far in 2019.
NASDAQ: FB | Facebook, Inc. - Class A Common Stock News, Ratings, and Charts

Facebook (FB) reports Q1 earnings, shares surge

Facebook Inc. shares jumped in late trading Wednesday.
NASDAQ: MSFT | Microsoft Corporation News, Ratings, and Charts

Microsoft (MSFT) reports Q3 earnings, shares move higher

Microsoft reported fiscal Q3 2019 earnings on Wednesday, and the stock jumped 2 percent on better-than-expected revenue.
NYSE: CAT | Caterpillar, Inc. Common Stock News, Ratings, and Charts

Caterpillar (CAT) reports earnings, shares slide

Caterpillar Inc spooked investors for a second straight quarter.
NYSE: TWTR | Twitter, Inc. Common Stock News, Ratings, and Charts

Trump met with Twitter (TWTR) CEO Jack Dorsey at the White House

Trump held a closed-door meeting with Twitter co-founder Jack Dorsey at the White House on Tuesday evening to discuss the social media platform.

Read More Stories