What Is the Gold Stock Price Relative To the Gold Price Ratio (GGR)?
Prevailing gold prices overwhelmingly drive gold mining profits and, looking at gold stock price levels relative to gold bullion by dividing GDX’s daily closes by the GLD gold ETFs, yields the GDX/GLD Ratio or GGR which provides the extent of under- or over-valuation of the stock category.
How the MunAiMarkets Gold/Silver ETFs Portfolio Performed In January
- Go HERE for a live chart (updated minute-by-minute) of each constituent in the portfolio (Not yet available)
- The VanEck Gold Miners ETF (GDX): UP 14.9% in January; UP 8.8% in 2024
- consists of producer companies that operate fully functioning mines that extract and sell gold
- # Holdings: 62
- GDX to GLD Ratio: UP 7.9% in January; DOWN 14.1% in 2024
- The VanEck Junior Gold Miners ETF (GDXJ): UP 13.1% in January; UP 11.9% in 2024
- consists of developer companies that take over once explorers find a promising deposit conducting feasibility studies to determine if the deposit can be mined profitably, work on securing permits, financing, and planning the construction of the mine.
- # Holdings: 88
- GDXJ to GLD Ratio: UP 6.0% in January; DOWN 11.5% in 2024
- The Global X Silver Miners ETF (SIL): UP 8.9% in January; UP 10.9% in 2024
- consists of explorer companies that are searching for new silver deposits by conducting geological surveys, drilling, and sampling and are referred to as “junior” mining companies.
- # Holdings: 35
- SIL to SLV Ratio: Unchanged in January; DOWN 7.6% in 2024
- The Sprott Junior Gold Miners ETF (SGDJ): UP 11.7% in January; UP 12.6% in 2024
- consists of explorer companies that are searching for new gold deposits
- # Holdings: 40
- GDX to GLD Ratio: UP 5.1% in January; DOWN 11.6% in 2024
- The U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU): UP 10.6% in 2024
- consists of companies (merchant “bankers) that provide alternative financing to mining companies by purchasing future production (i.e. streaming) or revenues (royalty) in exchange for upfront cash payments.
- # Holdings: 28
Summary
In total, the above 5 gold/silver related ETFs encompass 87% of the gold/silver ‘mining” sector (i.e. 253 companies) and were UP 12.3% in January and were UP 11.0% in 2024 and the GGR was UP 6.2% in January.
In addition,
- The SPDR® Gold Shares ETF (GLD) was UP 6.8% in January and was UP 26.7% in 2024 and the iShares Silver Trust ETF (SLV) was UP 8.3% in January and was UP 20.9% in 2024.
Conclusion
As noted above, the GDX GGR, for example, was DOWN 14.1% from the end of 2023 to 14.0 and that was absolutely jaw-dropping but increased to 15.1 in January. Past super-low-GGR extremes have always been followed by major gold stock up-legs and that portends to a coming massive surge in gold stocks – and silver stocks, too. The 14.9% increase in the gold based ETFs above shows that that surge is in its early stage.
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