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iShares S&P/TSX Global Gold Index ETF (XGD)
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BMO Junior Gold Index ETF (ZJG)
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SPDR Gold Shares ETF (GLD)
Q: Hi,
I have a divided the amount I set aside for Gold (long time hold as a hedge against many variables) between GLD,XGD and ZJG. But the Junior Golds cost me money! Down about 12%. On GLD and XGD I am up. Will the Juniors see the light of the day soon? Or should one wrap up th e position and move it to XGD/GLD? Or your favourite PHYS?
I have a divided the amount I set aside for Gold (long time hold as a hedge against many variables) between GLD,XGD and ZJG. But the Junior Golds cost me money! Down about 12%. On GLD and XGD I am up. Will the Juniors see the light of the day soon? Or should one wrap up th e position and move it to XGD/GLD? Or your favourite PHYS?
5i Research Answer:
Typically junior golds move "later" once the sector momentum kicks in. Juniors are riskier and investors need confidence that any rally has staying power. But once they move the move tends to be very aggressive. Stocks can double fast under the right conditions. We think if one owns gold exposure 'some' junior exposure does make sense, providing an investor temperment is appropriate. As noted, they can do nothing for years before spiking.