The 3 charts below I feel provides a good visual of the performance of GLD (gold) in comparison to the US traded GDX and GDXJ gold share ETFs (the 2 lower charts) over the last 2 years.
Bear in mind that both GDX and GDXJ have a significant number of Australian Gold shares in their holdings so their performance can and does have a significant bearing on sector sentiment and how our own Gold shares perform.
In the GLD chart I have highlighted in a small light blue circle the High and Low of the last 2 years. I have similarly highlighted where GDX and GDXJ were trading at the same time.
I have also highlighted in a light red circle in all charts where they are currently trading.
It is very clear from this comparison that Gold shares in general are trading at a significant discount to where they should be priced today. Let’s roughly say some 30% cheaper at a glance. This is great news for those holding Gold shares for the long term !
I have mixed signals where I feel Gold will trade in the short and possibly medium term.
It might even have a few more retracements left in it as it continues to meander within its longer term basing pattern, though there are higher lows under construction
Just a matter of waiting and then boom !
