It is interesting to note that major gold mining stocks for the most part have more than comfortably outperformed a basket of gold mining juniors like the GDXJ gold ETF. Barrick Gold (ABX) in particular performed spectacularly up 90%, this somewhat contrary to normal theory which might suggest that juniors comfortably outperform gold majors at a time of rising gold prices.
My view is that the main reason for the spectacular performances of some (most) of the majors is rebuilding of gold stock positions by funds which had virtually sold out of gold stocks over the prior three years. they just didn’t want to be left behind in the recent gold price surge. It is also apparent that in a time of rising gold prices, gold mining stocks hugely outperform the metal itself and its proxies like the gold ETFs.
To read more of my analysis on this click on GDXJ And The Gold Mining Majors – Where To Now? which is published on the Seeking Alpha website.
Firstly my compliments of the season to all reader’s of lawrieongold.com, which I have now been publishing for almost exactly one year – and which has achieved just short of 100,000 page views over the period. Thanks for following.
Here are some pointers to articles I have published on Sharpspixley.com – one of the best aggregators of precious metals news and comment available – in the past few days:
Scary year ahead. Should we be buying gold and silver: Portents for 2016, according to a number of well-respected observers – are beginning to look decidedly scary. Will this turn the investment sector back into buying gold and silver?
Russia adds another 21.8 t gold and 46t more drawn out of China’s SGE: The Russian central bank has been continuing its gold buying spree increasing its holdings by around 22 tonnes, while China’s SGE sees physical gold continuing to be withdrawn at a strong level
And one you may not have seen, published on Seekingalpha.com pointing to the potential of an investment in the GDXJ if gold and silver do make something of a recovery in 2016: GDXJ- Limited Downside And Great Upside Potential In A Rising Gold And Silver Price Scenario