Can't Pick A Gold Stock? Check Out The GDXJ
With over 2000 junior mining companies with stock that are at rock bottom prices, it can be a real tough decision on what stock or stocks to invest in. There are a lot of technical as well as economic indicators that are pointing to another bull run in gold and silver very shortly. Some say we are already in a secondary bull market of metals and lots of investors are looking at getting in while the getting is good. So that begs the big question, which stocks should perform the best.
In my last short write up Six Hot Junior Mining Stocks For 2016 - John Kaiser I posted a quick video of John Kaiser of the Bottom Fishing Report. He had six of his top picks that he felt had what it takes to be a good stock pick. As he pointed the main factors in deciding are cash on hand, management and property there are also factors that come into play. For me jurisdiction plays an important roll. With so much uncertainty in world conditions both political and economic, I personally have a tendancy to stay with the "familiar factor". Place like Canada, USA, Australia would be my choice of jurisdiction. These places give you a sense of security as the governments are not known to be oppressive or radical and there is always a good sense of law and order. Investing in companies that operated in South America or Africa have the political issues always running in the back of your mind. Once you invest inthese places there always seems to be that realm of risk that you don't have in North America. In fact even investing in Europe has it's issues. We saw earlier this year how the so call deomcartic government of Greece came to odds with Eldorodo Gold.
This all brings me to the reason why when looking into individual mining stocks, one should always check out the GDXJ. The GDXJ is a gold miners ETF and has many different mining companies listed in it's holdings. In order to be listed in the GDXJ there are a lot of specifics the companies need to go through. This is no to say that any of them will not fail at obligations but at the time they are listed they met the criteria that was expected of them. This list of companies is a great place to start looking for a junior or mid tier miner to invest in.
Below is a short list of the top 10 stocks that are in the GDXJ. You can find the rest of the list on any gold ETF site.
- Northern Star Resources Ltd
- Osisko Gold Royalties Ltd
- Evolution Mining Ltd
- Centamin Egypt Ltd
- Pan American Silver
- Torex Gold Resources
- Alamos Gold
Alternatively you can just buy shares in the GDXJ itself. This way each share has a portion of all the mining companies that are listed within this ETF. For those who don't really want to pick and choose this is great way to take part in the next gold bull run as the GDXJ is at almost historic lows.
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