GDXJ Stock Recent News

Gold has a long-standing reputation as a safe haven asset that investors turn to in times of economic and geopolitical distress. Historically, those looking to access the precious metal would purchase it in coin or bar form from precious metals dealers.

On December 6, U.S. crude oil experienced a sharp 4% decline, marking its lowest price since late June.

The VanEck Junior Gold Miners ETF is at risk due to the rise in real bond yields, which have had a history of undermining gold mining stock valuations. With the Fed maintaining tight policy and free cash flows already in decline, investors may begin to price in rising default risk in the sector, driving down valuations further. Long term, while I expect a major reversal in monetary policy driving real bond yields back below zero, the GDXJ is a risky way to position for such an outcome.

Gold prices have remained flat in the last two months despite a weaker US dollar. The GDXJ ETF, which tracks small-cap companies involved in gold and silver mining, has underperformed the S&P 500 over the last three months. Despite a high valuation and weak seasonal trends, the ETF has potential for growth if it can rally above the $42 level.

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.