The junior miners are sensitive to drops in gold prices, but would outperform the larger miner funds if gold prices were to gain rapidly, reports Sterman. GDX has currently lost 24% while GDXJ has dropped 35%over the same time period. As companies are working hard to boost profitability, the miners could have plenty of upside to offer.
Market Vectors Gold Miners
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon’s clients own GDXJ.