I have several standard-sized positions of GDXJ. And at $38.27, the author is right about it being a disappointment. After all, I held it last year and exited in December above $40. So this year, since I bought right back in January after a dip, it's been flat.
But that's all past. The bottom line with GDXJ is that it should outpace gold NOW. I'll hang on until it jumps or I need money.
September 9, 2011
Why Is GDXJ Underperforming?
SeekingAlpha.com
In mid-August of 2010, I recommended buying three ETFs -- immediately. One of those recommendations is up over 130%; another is up nearly 20%; and the third is the Market Vectors Junior Gold Miners ETF (GDXJ), which is now up about 40% from my initial recommendation. Gold, over that same period of time, is up approximately 50% -- which means something is going wrong with my GDXJ recommendation.
I fully expected GDXJ to outpace gains made in gold. In fact, at the time I made the recommendation, GDXJ actually was outpacing gold -- and that's what I pointed out in 2010:
The good news is that this ETF is currently doubling and tripling gains made in gold's price. That's usually how it goes for individual gold miners, and since this fund is a collection of miners, it's not surprising that it exhibits the same characteristic.
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Nearly every star is aligned for this ETF -- and yet, we haven't caught a break. But I believe this ETF's best days are ahead of it. I think we'll see huge outperformance for this fund -- and I simply can't state in any stronger terms that I believe you should own it today if you don't already.
Full story: http://seekingalpha.com/article/292792-why-is-gdxj-underperforming
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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