Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

SSR Mining begins drilling at Eagle Plains (TSX-V: EPL) Fisher Gold Property
By: Nicholas LePan,

Worried About Rising Rates? I Believe this Strategy Could Be the Answer
By: Frank Holmes

Is It The Trade War Threats Or Extreme Overvaluation?
By: Dave Kranzler

GoldSeek Radio Nugget: Peter Schiff and Chris Waltzek

When Is Three Better for Gold Than Four?
By: Arkadiusz Sieron

Mining Gold and Silver From Bombs
By: Rory Hall

Golden Arrow Starts Drilling at Antofalla Silver-Gold-Base Metal Project, Argentina
By: Golden Arrow Resources Corporation

Gold +1.8%, Silver +2.5% As Fed Increases Rates And Trade War Looms
By: GoldCore

Gold Seeker Closing Report: Gold and Silver Gain Roughly 2% After Fed
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 3 21 2018
By: Ira Epstein


GoldSeek Web

Juniors Show Relative Strength as Precious Metals Weaken

 -- Published: Friday, 12 June 2015 | Print  | Disqus 

Despite three consecutive weeks of losses precious metals have failed to mount much of a rally. Gold closed last week above $1170 and may close this week below $1180. Meanwhile, Silver has struggled to mount any rebound and appears to have lost $16 as the week comes to a close. While the risk of a final breakdown is growing, one positive we see is the relative strength in the riskiest parts of the mining sector.

GDX tracks the senior miners (including royalty companies now) while GDXJ tracks what we would term the largest juniors. When the sector is performing well, wed expect GDXJ to outperform and when the sector is performing poorly, wed expect GDXJ to underperform.

The chart below plots GDXJ against GDX. The ratio peaked in April 2011 and may have bottomed in March 2015. Even as the spring rally in precious metals fizzled GDXJ continued to outperform. A few days ago the ratio reached a 5-month high.



Take a look at GLDX against GDX. GLDX tracks exploration companies which are much smaller in market cap than those in GDXJ. The ratio has formed a 2-year base and rounded bottom that appears to be quite strong. Last week the ratio touched a 7-month high.



Stepping back from relative strength, I want to take a look at GDXJ in nominal terms. GDXJ is far more liquid and therefore relevant than GLDX. The chart below is the weekly candle chart for GDXJ. Note that GDXJ has made three lows in the past eight months. Volume has decreased at each subsequent low. This indicates that the strength of the selling has abated. It will be interesting to see how GDXJ performs if and when Gold breaks below $1150. GDXJ is trading near $25 and has good support at $21-$22.



While not a buy signal, the relative strength in GDXJ and GLDX tells us a few things. It argues that the bear market is likely to end soon and that with respect to all mining stocks, GDXJ and GLDX could lead the recovery. However, in the meantime we are waiting for Gold to break below $1150 and then $1100 and we are waiting for GDXJ to retest its lows. Be patient as those developments would bring about better and safer opportunities. Consider learning more about our premium service including our favorite junior miners which we expect to outperform in the second half of 2015.

Jordan Roy-Byrne, CMT

| Digg This Article
 -- Published: Friday, 12 June 2015 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2017 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.