Is This Gold ETF Too Big To Succeed?

Daniela Cambone of Kitco News welcomes Frank Holmes back to the program to discuss one gold ETF that is making headlines currently, the VanEck Market Vectors Junior Gold Miners ETF (GDXJ). The GDXJ is going through a massive rebalance, expanding its scope into larger miners, while pushing aside some quality small-cap gold stocks in the process. “The problem is massive capital is going into the GDXJ and then the index changes,” Holmes said.

Frank mentions two gold mining companies, Klondex Mines and Wesdome Gold Mines, as names that investors should pay attention to during the rebalance. Both have seen dramatic drops in the last few weeks, but this merely presents a buying opportunity for investors, he explains, noting that their “opportunities for growth are spectacular.” Watch the full replay below!

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Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the interview were held by one or more accounts managed by U.S. Global Investors as of 03/31/2017: Wesdome Gold Mines Ltd., Klondex Mines Ltd., VanEck Market Vectors Junior Gold Miners ETF (GDXJ).

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