Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in
In the same category

Gold Up $110, GDXJ Remains Flat – Get Ready For Gold Stock Rubber Band!

IMG Auteur
Published : April 18th, 2017
248 words - Reading time : less than a minute
( 2 votes, 4.5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...

Last time the GDXJ closed around $36 was on March 13, 2017. Incredibly, during that time frame, gold is up $86 per ounce!

On January 10, gold was trading at $1,190 an ounce, $110 below its current spot price. Again, the performance of the junior gold miners has remained flat!

This is a stark reversal from 2016’s action that saw gold stocks far outperform the price of gold. So what’s next?

Two scenarios can play out from here. The first would see gold coming back down to match the performance of the GDXJ.

The second scenario would see a rubber band effect in play. Gold stocks play catch up to the price of gold and then continue showing strength, forging the next leg of the gold stock bull market.

Since the beginning of 2017, gold has shown firm resolve, even in the face of a strong USD. Against a basket of foreign currencies, it is showing punishing strength. We see this as exceedingly bullish sign for the metal. Hence, we believe that the second scenario is more likely to play out.

Gold miners, especially juniors, have historically moved with gold in an exaggerated matter. This is because a dollar move in the precious metal equates to significantly more or less cash flow to the company. Because the GDXJ has not moved with the current appreciation in gold, this means any future increase in gold price can be met with added torque – very much like a rubber band.

Data and Statistics for these countries : Georgia | All
Gold and Silver Prices for these countries : Georgia | All
<< Previous article
Rate : Average note :4.5 (2 votes)
>> Next article
Graham Summers is Chief Market Strategist for Phoenix Capital Investment Research, an independent financial research firm based in Charlottesville VA with clients in 56 countries around the world.
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
NY Fed President Wants Consumers to Tap Home Equity: Didn’t We Try ...
17 Augmikejuha
As a prudent investor, I eliminated all mortgage debt in January 2009. When I paid off my loan with Bank of America, they initially refused to tak...
Total Eclipse
19 AugThe Recusant
"I’d like to hear [sic] an argument..." Historical statues typically honor or remember people of greatness, the beneficial contribution th...
Can a government surplus cause the economy to tank?
18 Auggfs543
Your dissection is incisive, Steve. You weren't refuting just this one writer. You were beating up on popular Keynesian fallacies.
Can a government surplus cause the economy to tank?
17 AugDRGEORGE
Thank you very much for that Steve. But please just don't 'leave it there'. The author of that article apparently intends to expand on that bullshi...
Smoke and Fire
16 Augaccording0
some things happen without collusion do you think that the stupid little rats of blm and antifa dont get paid to help wreck our socie...
Smoke and Fire
16 Augaccording0
James. Even a believer has to leave Zoar before he starves to death. Kudos for having the fortitude to write this.
The Folly of Democratic Socialism
16 AugFalconflight
It this Amerika, I reference it as Krony Socialism.
Stock Market Correction Hasn’t Begun to Begin! It Will (And North K...
16 AugJ.
This bubble has been deemed TBTP (Too Big To Pop). Central banks have outright said in public that they will do "whatever it takes" to prevent it....
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS