Gold is seen as a store of value when currencies become unstable There are different ways to invest in gold and making the wrong choice can have you sitting with an under-performing asset. Developing a large gold deposit into a working mine can earn shareholders a fortune. The risk for such gains is high because many junior gold stocks fail. Finding gold is becoming more difficult, and even when new deposits are discovered, a junior needs to survive not having cash to advance the project.
No Need to Horde Gold
Gold ETFs allow you to enjoy gold exposure without actually having to store physical gold. GDXJ is a unique gold ETF because it tracks an index made up of stocks from silver and gold mining companies. Since it made its debut in 2009, the Market Vectors Junior Gold Miners ETF (GDXJ) is popular with investors, providing exposure to small to medium-capitalization companies who generate about 50% of their revenues from silver and gold mining. GDXJ is one of the biggest Efts with an asset base of $1.6 billion.
Driving Stock Prices Higher
Smart stock selection technique makes it possible for GDXJ to deliver big returns. Lower capitalization stocks are more volatile which means bigger moves when gold prices are oscillating. This is the reason why GDXJ is a good gold stock EFT. When GDXJ buys junior stock, buying pressure drives it higher, and any junior making the GDXJ component list will find it easy raising capital and being successful.
As more investors discover GDXJ and its ability to add diversified junior-gold exposure to their portfolios, they’ll invest in it and its assets will grow and its capital in junior gold’s will increase. Additional capital from investors through this ETF into junior stocks drives stock prices higher.
The more capital, the higher stocks will run. GDXJ provides a superior junior-gold tracking vehicle. As GDXJ’s continue to evolve into a analytical tool, it will expand investors’ knowledge of how junior gold’s move. GDXJ Junior Gold Miners ETF offers investors a quick way to get diversified junior-gold exposure. For investors, problems with junior-gold investing are eliminated such as buying junior gold’s outside the United States where most of them list.
Getting Gold Exposure
Gold is one of the best performing assets and because GDXJ is a Good Gold Stock ETF, it is one of the ways to take advantage of getting some gold exposure. Now you can also invest of course in individual gold stocks. That is the best way to get the most upside, but you have to know which ones to buy and control your risk.