Let's forget about 2011 and just go back to Aug 2020 and here is the price of gold:
Here is the price of GDXJ in Aug 2020:
Compared to the latest GDXJ price:
It is amazing that GDXJ price is at $57 today when gold price is >USD$3,000/oz whereas GDXJ was at ~$65 when gold was at ~USD$2,000/oz in Aug 2020. Because gold price is now ~50% higher than Aug 2020 then one would expect GDXJ "should" be ~50% higher as well i.e. $65 * 1.5 = ~$98 instead of $57 which is ~70% below expectation. And GMD share price "should" be ~$6.36 instead of $3.74!
It goes to show that the general investors are still not into the junior gold miners yet and that is a fantastic news to any contrarian investor! Whatever price one pay for gold miners in the GDXJ ETF now potentially has ~70% upside and therefore still relatively cheap.
GLTA
(20min delay)