GDXJ: History May Favor Gold Miners Above S&P 500 In 2025
Historical data shows owning gold and related miners has been profitable after periods when Dow Jones Industrial and Gold prices reached record high pricing together (like 2024). The VanEck Junior Gold Miners ETF offers exposure to mid to smaller cap miners, with the potential for strong leveraged upside to gold/silver. Top 10 holdings in the ETF are worth owning individually, while wider diversification into Canadian and Australian miners can mitigate global geopolitical risks.
Are junior gold miners the best precious metal play right now?
Gold prices have reached a new all-time high (ATH) of $2,749 per ounce on October 23, up from a previous high of $2,710 on October 18.
Gold Mining ETF (GDXJ) Hits New 52-Week High
For investors seeking momentum, VanEck Junior Gold Miners ETF GDXJ is probably on the radar. The fund just hit a 52-week high and is up 61.6% from its 52-week low price of $30.46/share.
GDXJ: More Mid-Cap, With A Lot Of Catch-Up Potential
Gold mining stocks have lagged gold prices in 2024, but the VanEck Junior Gold Miners ETF offers potential for growth in smaller mining companies. The GDXJ ETF focuses on small to mid-cap gold miners, providing global exposure and a Price-to-Book ratio of 1.69x. The ETF is volatile, with top holdings concentrated, but offers a diversified way to invest in junior miners without individual stock trading complexities.
GDXJ: 48 To 28 To 58
Bubble collapses for large-cap U.S. stocks almost always feature initial substantial losses for gold mining and silver mining shares, followed by dramatic percentage gains. A combination of recent insider selling of gold mining and silver mining shares, the shares underperforming bullion, commercials being heavily short gold futures, and hedge funds being heavily long gold futures is likely to be followed by much lower prices for both gold and silver.
GDXJ And GDX: On The Cusp Of The Next Bull Cycle
Gold miners have historically experienced explosive moves during gold bull runs, indicating potential for another outperformance. GDXJ has returned 35% since my first Buy coverage last year and has slightly outperformed Gold in this timeframe. Some top gold mining companies are showing positive growth in operational cash flow, suggesting they could become cash cows at current gold prices.
