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Is This Gold ETF Too Big To Succeed?

April 25, 2017

Daniela Cambone of Kitco News welcomes Frank Holmes back to the program to discuss one gold ETF that is making headlines currently, the VanEck Market Vectors Junior Gold Miners ETF (GDXJ). The GDXJ is going through a massive rebalance, expanding its scope into larger miners, while pushing aside some quality small-cap gold stocks in the process. “The problem is massive capital is going into the GDXJ and then the index changes,” Holmes said.

Frank mentions two gold mining companies, Klondex Mines and Wesdome Gold Mines, as names that investors should pay attention to during the rebalance. Both have seen dramatic drops in the last few weeks, but this merely presents a buying opportunity for investors, he explains, noting that their “opportunities for growth are spectacular.” Watch the full replay below!

 

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the interview were held by one or more accounts managed by U.S. Global Investors as of 03/31/2017: Wesdome Gold Mines Ltd., Klondex Mines Ltd., VanEck Market Vectors Junior Gold Miners ETF (GDXJ).

The Consumer Price Index (CPI) is one of the most widely recognized price measures for tracking the price of a market basket of goods and services purchased by individuals.  The weights of components are based on consumer spending patterns.

The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

The University of Michigan Confidence Index is a survey of consumer confidence conducted by the University of Michigan.  The report, released on the tenth of each month, gives a snapshot of whether or not consumers are willing to spend money.

Net Asset Value
as of 12/15/2017

Global Resources Fund PSPFX $5.91 -0.03 Gold and Precious Metals Fund USERX $7.27 -0.06 World Precious Minerals Fund UNWPX $5.67 -0.05 China Region Fund USCOX $11.08 -0.09 Emerging Europe Fund EUROX $7.06 -0.01 All American Equity Fund GBTFX $24.78 0.24 Holmes Macro Trends Fund MEGAX $22.12 0.24 Near-Term Tax Free Fund NEARX $2.21 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $2.00 No Change