GDXJ Stock Recent News

While the VanEck Vectors Junior Gold Miners ETF would likely outperform if gold prices manage to push higher, the risk-reward outlook is extremely poor here. Despite the recent rise in gold prices, junior gold miners have been unable to grow their sales and earnings, while free cash flows remain negative.

The Precious Metals R&S Index grew by 3.11% in April. The Precious Metals R&S Equally Weighted Index grew by 1.85%.

GDXJ's 6-month performance has been outstanding, and could be the start of a big run higher in 2023. My personal outlook for gold and silver bullion is quite bullish this year. Now may be a great time to add leverage.

The mid-tier and junior gold miners just reported mixed quarterly results. Their overall production surged, although GDXJ throwing in a super-major drove that. Mining costs soared to record highs, but a handful of extreme outliers heavily skewed that. Still, these smaller gold miners were able to earn solid profits showing fundamental strength.

Depending on which camp you "subscribe" to, inflation will either get entrenched in the economy or completely vanish. I don't belong to either camp and think less about what could happen and worry more about protecting myself if it happens.

It has been a good start for the new year, with good news on the inflation front stirring optimism that the Fed may not have to raise rates as high as once thought. In an effort to spot which areas of the market are hot right now, I turned to the universe of ETFs. There are more than 3,000 ETFs listed in the US alone, and more than 8,500 globally.

The rally in the GDXJ Junior Gold Miners ETF is overextended relative to the price of gold, which itself looks at risk from high real bond yields. While the GDXJ remains low relative to its historical price, this is not an indication of undervaluation. Valuations are outright expensive at current gold prices.

Gold looked like toast after the Nov. 2 Fed meeting. The continuous futures contract stopped falling at the right level.

Gold miners have been an awful spot to allocate to for more than two years, despite high inflation. Rising real yields have been a recent headwind, but price action suggests now might be a favorable time to put cash to work in the space.

Precious metals-related exchange traded funds rallied on Thursday after the Federal Reserve's less aggressive stance in the face of weakening U.S. economic data helped support the case for hard assets. Among the better-performing non-leveraged ETFs of Thursday, the ETFMG Junior Silver Miners ETF (NYSEArca: SILJ) advanced 3.