Not all Goldminers are Attractive

Bill Cara

Not all Goldminers are attractive stocks.

$GDX ETF for Senior Goldminers
Gain(Loss) 12.31 to today +13.15%
Gain(Loss) 1.31 to today +14.01%
Gain(Loss) 2.28 to today +22.23%
Gain(Loss) 3.31 to today +31.66%

$GDXJ ETF for Junior Goldminers
Gain(Loss) 12.31 to today -1.59%
Gain(Loss) 1.31 to today +0.14%
Gain(Loss) 2.28 to today +13.34%
Gain(Loss) 3.31 to today +32.45%

All 35 Goldminers in Study Group
Gain(Loss) 12.31 to today -5.78%
Gain(Loss) 1.31 to today -0.98%
Gain(Loss) 2.28 to today +15.60%
Gain(Loss) 3.31 to today +28.54%

You can see how the big cap Goldminers started the first wave of buying in January, which was likely from the well-researched institutional investors, and now the small-to-mid-cap Goldminers have started to out-perform as the public got interested.

You can also see that the full study list has significantly under-performed the Goldminer ETFs, which illustrates how some of the Goldminers have remained unattractive based on the quality of the company and relatively weak fundamentals.

What this study does not show is the relative outperformance of Goldminers over Silverminers.


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