Bullion Shortages Will Push Junior Mining Stocks Higher in 2020

The chart above shows the ratio of GDXJ/GDX. Although I don’t consider GDXJ to be a junior ETF per se, the GDXJ index does contain smaller cap, later-stage juniors and smaller cap producers. In that sense, it offers slightly higher risk/returns than GDX. That ratio has popped above the downtrend line that was established at the peak of the last bull cycle in the sector.  Prospectively, as long as it stays above that trendline and moves higher, it’s a great indicator that the precious metals sector will stage a big move higher for the next couple of years.

Trevor Hall and I discuss the physical bullion shortage developing in London and New York and why the precious metals sector will likely make a big move in 2020 – click on the graphic below or this link to listen:

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I cover several junior exploration stocks with upside that is several multiples of their current price. I also specialize in looking for value plays in larger cap producing miners as well as reviewing stocks to avoid.  You can learn more about this mining stock newsletter here:   Mining Stock Journal information.

NOTE: I do not receive compensation from any mining stock companies and I do not accept any precious metals industry sponsors. My research and my views are my own and I invest my own money in many of the stocks I present.

2 thoughts on “Bullion Shortages Will Push Junior Mining Stocks Higher in 2020

  1. Below is from the COMEX website about their Gold Futures contract. They are so proud of this statement but it is so laughable. The COMEX is about trading (buying & selling ) gold contracts, not about any physical delivery as they tout trading 27 million ounces daily. Hey, everybody, we are all about LIQUIDITY, not delivery.

    Welcome to COMEX Gold Futures

    COMEX Gold futures (ticker symbol GC) represent the world’s leading benchmark futures contract for gold prices. The contract offers superior liquidity, trading the equivalent of nearly 27 million ounces daily.

    https://www.cmegroup.com/trading/why-futures/welcome-to-comex-gold-futures.html

  2. I just wonder if we getting some sort of sign because Palladium and Rhodium going parabolic ??! and who is pushing prices ? – Masters most probably but why now ?!

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