paper companies, Exloration companies that found no worthwhile deposit. No asset,no money. All they do is mining small investors on WallStreet or Toroton exchange whatever. Short of a gold rally to $2000. The money you lost (I lost more than most of you) is lost forever. I bought the dips from 25 all the way to 17. Sold it all last month. I'm in physical gold now.
Don't waste your time on GDX ,the majors have their own problems, production cost from deteriorating concentrations. They mined the best veins years ago. Whats left is expensive to get.
The whole idea behind this fund is supposed to have more alpha than the gld while gold goes up, but gld goes up 3% gdxj goes up by 1.5, gld goes down 1.5% and gdxj goes down 3 %, we are getting the worst of both worlds, makes no sense, really a rather worthless and value destroying index
That's why owning broad-based indexes are better than specific companies...less operational and country risk. As for the best veins years ago, that's one of the reasons why the price of physical gold will go up (just like oil, the easiest to reach oil has already been pulled out).
With the Fed pumping $85 billion into the economy each month and ZIRP at least through 2014, it's important to be patient. If you don't want to put new money to work without actually owning shares, how about longer dated call options on GDX or GDXJ? As Jesse Livermore said, "Men who can both be right and sit tight are uncommon."
yet again gdxj underperforms the average of its top 5 holdings, how can this consistently happen, the index managers must be charging a lot for fees, at least someone is making money on this index fund