Click here for the PDF: The Weekly Beacon April 12 2024

We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.

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This weeks issue: Gold prices, GDX ETF, Gold miners, Junior miners, Nvidia, Semiconductors, Nvidia stock, Intel stock, March CPI, Inflation report, FED, Interest rates, Costco, Gold purchases, Gold bars, Chinese stocks, Chinese cement company, China Tianrui Company, Chinese economic downgrade, China credit ratings, China government debt, The Masters, Amateur golfers.

Junior’s time to shine

Is now the time? Finally, after years of underperformance, are junior miners finally going to have their day?

This chart of Crescat Capital follows the major gold miners through the ETF, GDX and junior gold miners through the ETF, GDXJ. The chart tracks the ratio of the two ETFs.

The chart above looks like it is about to break out above a negative trend line that the relationship has traded under for the last 15 years. A major breakout would mean junior miners are outperforming major miners in the gold industry.

This chart is not an exact science but reflects some catch-up potential from the juniors.

The poke-up above the yellow line is a healthy sign that the recent runup in precious metals is starting to propel the riskier segments of the industry as they begin to outperform the established large-cap miners. This move also reflects the sentiment of investors as they begin to warm up to miners due to record-level gold prices.

 

Click here for the PDF: The Weekly Beacon April 12 2024