A small-cap ETF, Market Vector Junior Gold Miners (NYSEArca: GDXJ), is off 25% so far in 2011.
“The good news is the gold equities are coming to the end of the consolidation, and a resolution within months is likely. Sentiment is bullish from a contrary perspective. The consolidation has weeded out the weak and impatient as earnings and cash flows for gold companies have improved and stock valuations have moved to multiyear lows,” Roy-Byrne said.
“Even in gold and silver we see that speculative long positions are near multiyear lows. This setup combined with the forthcoming monetization in Europe, stimulus in China, and more monetization from Fed Chairman Ben Bernanke could produce quite the launch pad for the gold shares in early 2012,” the editor predicted.
Market Vector Junior Gold Miners
