Starting a new topic for GDXJ
Junior Gold Miners ETF (GDXJ)
GDXJ is what I use as an index or benchmark. I wanted something that didn't have any of the bigs like Barrick or Newmont in it. Something that pretty much reflects the size of miners I like. I watch the GDXJ for technical stuff too. Check the charts going back to last fall. That $34 area keeps coming up over and over. Seems pretty important. Feels to me like it's on good support right now. If I didn't already have more miners than I like, I'd be thinking about buying right here, not panicking out.
I don't even know what's in the HUI, that a lot of people use. I guess I went with an ETF initially because whatever site I was using at the time wouldn't give me the HUI. I'm just used to GDXJ now, have a feel for it and so I stick with it.
I just use the GDX. I place whatever miners I am trading below the GDX on my streamer and watch for lags. Once a miner falls behind, I can buy. It's my metric. Works well for me.
Little Guys Still Under Pressure
'More than a dozen junior miners or prospectors almost surely will be added tothe list at the close of this week. Four are to be removed. The additions and deletions are based on the accumulation or loss of market capitalization during the quarter.'
Serious spanking for GDXJ again today. And again strangely not reflected in my actual miners portfolio. Not complaining, mind you, but it's odd. Perhaps related to the additions/deletions mentioned above?
I've been buying GDXJ for three reasons,
1) I want exposure to the juniors but don't have the time to research them individually,
2) I want diversity in the sector and,
3) I don't have easy access to those companies traded on non-US exchanges.
I'm noob when it comes to managing my own investments so if anyone more experience can share on the strengths or weaknesses of this strategy, I'm all ears.
Can anyone enlighten me on GORO? I believe they are a very low cost producer with no debt, in safe political areas. Stock has dropped 20% recently and looks interesting.
My first purchase of GORO was at $2.75.....suffice to say that I am big time supporter.
1) Low share count (53 million)
2) No debt and no warrants to drag price down
3) Huge land package
4) Just started production (first open pit and then moved to underground)
5) Philosophy of get to production first and then worry about drilling out land to minimize dilution
6) Great grades of AU and AG (AG credit to operating costs will most likely give sub $0 cash costs)
7) Paying dividend (target 1/3 cash flow back to shareholders)
8) AU production forecast (estimates based on expanding capacity....said they could double 2012 capacity):
One of my largest holdings and I think it is dirt cheap right now.
Probably my best purchase ever.....been investing in juniors since 2006.
GDXJ is really giving up the ghost on my favorite support area of 34 ish.
Here's a list of the additions and deletions due to be made to the GDXJ index this Friday 17th June at the close of trading.
Some of my favorites (GPR, EDV, ECU) are due to make it into the GDXJ which should be promising and provide some additional volume.
thanks for the info. I bought some a few months ago and I am planning to buy some more.
Are the miners waiting for the Fed next week ? I think if the Fed confirms continued low rates and loose policy that could be the push they need ....
New Vulture Bargain ‘Ops’
The GDXJ is by far one of the best investor tools for those of us that don't have time to fully research all the Jrs. Serious research for the top 10 holdings of GDXJ would consume weeks and weeks of full time work, so yes I recommend buying them as a sector. You never know which Jr will strike it rich in stock valuation, so just buy them all ...
Many of us physical holders have spend months and months of man-hours researching physical and the physical market. We just don't have time to research ever-changing companies. GDXJ is a great portfolio diversifier if you're a major silver investor because there is a lot of gold to be found in GDXJ. So trade in that fiat and buy the JRs
I wanted to get your opinions on something I see in the 4hr GDXJ chart using MACD (12,26,9, EMA).
Does the higher HIGH on 6/1 (versus that on 4/25) and the higher LOW (currently happening versus that on 5/6) serve as a strong indicator that the downward trend may be ending?
Sorry, I'm not adept at interpretation of the MACD.
Sorry Captain, it isn't that hard to do the research. GDXJ is a good proxy for finding good companies, but if you can't do the research I guess you can stick to the GDXJ. But there are many on there that warrant a discovery. Lots of good miners on the GDXJ.
The GDXJ has its place but it represents the mediun/small-cap sector and not the true juniors of small/micro cap size. Take a look at the McEwen Junior Gold Index (non-producers) at http://www.mcewencapital.com and also check out the BMO Junior Gold Index ETF (ZJG.TO at stockcharts.com)
For a detailed analysis of some of the other gold miner indices and how best to make use of them check out:
Which Index is the Best to Use: the HUI, XAU or the GDX? http://www.munknee.com/2011/06/which-index-is-the-best-to-use-the-hui-xau-or-the-gdx/