Junior Gold Miners ETF Beats Gold Bullion Performance - By Wide Margin

[bobbyw24]

This leveraged play on Gold offers huge potential for profits [or losses]

Since GDXJ started trading on Nov. 11, 2009, the ETF has outperformed the return of the gold bullion ETF GLD in impressive fashion.

GDXJ 10.9%
GLD 1.6%



As outlined in this background article GDXJ is comprised of smaller, more speculative gold miners and explorers, so the volatility is much more substantial the changes in the price of gold itself.

With Friday's jobs data sending the dollar lower and gold higher given the inverse relationship, while many feel there's been a gold bubble in formation for some time now, this trend may have legs. There was only 1 time in recent history when the gold-dollar correlation broke down and unless we have another complete global meltdown instantaneously, there's no reason to believe we'll see that anomaly repeat itself.


More on this ETF at VanEck:

http://www.vaneck.com/index.cfm?cat=...gdxj/googleppc

continue

http://seekingalpha.com/article/1818...by-wide-margin

[purepaloma]

2 months of data is a trend?

Gold/Silver isn't about massive appreciation - it's about protection of wealth (with some nice upside of course)

[Blueskies]

I went all mining stocks this year over bullion and made a killing.

Mining stocks are better. Only own bullion if you fit into one of the three categorizes:

1. You think we could all be wrong and that there's a fare chance the deflationists are right. In this case, you would lose less money if the price of gold did crash sharply.

2. You are close to/in retirement and can't afford to take any risks with your money. CEO scandals, lawsuits, etc. could wipe out a specific miner any given day.

3. You believe that we're truly facing the end of the world. That the government will cease your stock portfolios and we'll all be paying for groceries with pieces of gold. If you fit here, bullion is better than mining stocks, but you should probably be stocking guns and ammo instead.

If you don't fit into one of those three categories, don't go bullion. Miners have a much greater upside.

[Brian4Liberty]

I am on the bandwagon...

I made my recommendation the day it was launched:

http://www.ronpaulforums.com/showthread.php?t=218623

Anyone else holding ANV? It took a big hit during the downturn, but if you bought at the bottom, you have some good gains...