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 provides the extent of under- or over-evaluation of the stock category.
How the MunAiMarkets Gold/Silver ETFs Portfolio Performed In 2024
- 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 8.8% in 2024
- consists of producer companies that operate fully functioning mines that extract and sell gold
- # Holdings: 62
- GDX to GLD Ratio: DOWN 14.1% in 2024
- The VanEck Junior Gold Miners ETF (GDXJ): 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: DOWN 11.5% in 2024
- The Global X Silver Miners ETF (SIL): 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: DOWN 7.6% in 2024
- The Sprott Junior Gold Miners ETF (SGDJ): UP 12.6% in 2024
- consists of explorer companies that are searching for new gold deposits
- # Holdings: 40
- GDX to GLD Ratio: 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 they were UP 11.0% in 2024.
In addition,
- The SPDR® Gold Shares ETF (GLD) was UP 26.7% in 2024 and the iShares Silver Trust ETF (SLV) was UP 20.9% in 2024
Conclusion
As noted above, the current GDX GGR, for example, is DOWN 14.1% from the end of 2023 to 14.0 and that is absolutely jaw-dropping and, since past super-low-GGR extremes have always been followed by major gold stock uplegs – and gold miners tend to not only mean revert to normal GGR levels, but overshoot proportionally to the upside – that portends to a coming massive surge in gold stocks – and silver stocks, too.
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