The fairly new Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) may be a great way to play the gold sector now, as gold is about to take off as most barriers have been removed, and even more important, gold mining companies look like they're finally going to start moving up with gold futures' prices, which Market Vectors Junior Gold Miners ETF could strongly participate in.
Why this is important at this time, or any time market conditions are like this, is the majority of large gold miners have most of the value they represent built into the share price of the stock. While they will definitely improve in value as gold prices rise, they are mature companies that won't move quickly.
On the other hand, junior gold miners are ready to break out, and it's quite possible more than one will skyrocket as a result, which will strongly benefit anyone who has invested in the Market Vectors Junior Gold Miners ETF.
A number of those following the gold industry believe the junior gold miners are the ones with tremendous upside potential, and because they have been held back for some time, as gold continues to move up, a lot more notice will go toward the junior gold miners and their fundamentals, which in a number of cases are underestimated.
Eventually they'll move to their true value, and when they do, as long as they're represented in the Market Vectors Junior Gold Miners ETF, it will rise with them.
Of course if you prefer to play it safe, you can always go the route of the Market Vectors Gold Miners ETF (NYSE: GDX), which moves in accordance with the large cap miners.
Either way, they're both positioned strongly, but the Market Vectors Junior Gold Miners ETF is probably about to take off, and it's a solid bet those investing in it won't be sorry they are.
Showing posts with label Junior Gold Stocks. Show all posts
Showing posts with label Junior Gold Stocks. Show all posts
Wednesday, May 12, 2010
Monday, April 5, 2010
Junior Gold Stocks Ready to Soar?
Junior Gold Stocks
After taking the latest economic hit or correction, gold has held on strongly, finding support at around the $1,100 an ounce level. There doesn't seem to be much chance that it'll change any time soon, and gold mining stocks, especially junior gold stocks, could be ready to explode upwards, as they lag the overall gold market, even though gold continues to be a long-term play.
For example, the larger gold stocks are down about 15 percent, while gold itself is up 30 percent. But for junior gold stocks, they are still down 60 percent, with a lot of room to increase, which many of them assuredly will going forward. This is as of the latter part of 2007, when noting the numbers above.
The gold bull market will be around for some time, and even though there is the possibility of interest rates being increased in the latter part of 2010, that shouldn't be near enough to overcome the economic pressures which continue to drive the price and value of gold up.
Junior Gold Stocks
After taking the latest economic hit or correction, gold has held on strongly, finding support at around the $1,100 an ounce level. There doesn't seem to be much chance that it'll change any time soon, and gold mining stocks, especially junior gold stocks, could be ready to explode upwards, as they lag the overall gold market, even though gold continues to be a long-term play.
For example, the larger gold stocks are down about 15 percent, while gold itself is up 30 percent. But for junior gold stocks, they are still down 60 percent, with a lot of room to increase, which many of them assuredly will going forward. This is as of the latter part of 2007, when noting the numbers above.
The gold bull market will be around for some time, and even though there is the possibility of interest rates being increased in the latter part of 2010, that shouldn't be near enough to overcome the economic pressures which continue to drive the price and value of gold up.
Junior Gold Stocks
Subscribe to:
Posts (Atom)