GDXJ / GDXJ: Surging Bond Yields Add To Gold Miners' Problems

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 more_horizontal

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 more_horizontal

While the VanEck Vectors Junior Gold Miners ETF would likely outperform if gold prices manage to push higher, the risk-reward outlook is extremely poo more_horizontal

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 i more_horizontal

The mid-tier and junior gold miners just reported mixed quarterly results. Their overall production surged, although GDXJ throwing in a super-major dr more_horizontal

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 an more_horizontal

GDX offers exposure to larger cap companies in the gold space, while GDXJ is tilted towards smaller ones. Both ETFs offer pretty similar cost structur more_horizontal

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. Whi more_horizontal