Gold Up $110, GDXJ Remains Flat – Get Ready For Gold Stock Rubber Band!

Palisade Research's picture

Last time the GDXJ closed around $36 was on March 13, 2017. Incredibly, during that time frame, gold is up $86 per ounce!

On January 10, gold was trading at $1,190 an ounce, $110 below its current spot price. Again, the performance of the junior gold miners has remained flat!

This is a stark reversal from 2016’s action that saw gold stocks far outperform the price of gold. So what’s next?

Two scenarios can play out from here. The first would see gold coming back down to match the performance of the GDXJ.

The second scenario would see a rubber band effect in play. Gold stocks play catch up to the price of gold and then continue showing strength, forging the next leg of the gold stock bull market.

Since the beginning of 2017, gold has shown firm resolve, even in the face of a strong USD. Against a basket of foreign currencies, it is showing punishing strength. We see this as exceedingly bullish sign for the metal. Hence, we believe that the second scenario is more likely to play out.

Gold miners, especially juniors, have historically moved with gold in an exaggerated matter. This is because a dollar move in the precious metal equates to significantly more or less cash flow to the company. Because the GDXJ has not moved with the current appreciation in gold, this means any future increase in gold price can be met with added torque – very much like a rubber band.

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Maestro Maestro's picture

Worse than the bankers rigging gold and silver prices and not having the gold that they sold you (or selling gold that they don't have via fraudulent COMEX Futures contracts) is the fact that we don't even have MONEY today.  Therefore all financial transactions and economic numbers predicated on the existence of money are FRAUD and FORGERIES presently.

Electronic digits and paper fiat currencies in use today are NOT money, according to the law of the country that issues the reserve currency of the world, the US Dollar (Article 1, Section 10 of the US Constitution); or by the tenets of the science of Economics (i.e., fiat currencies are not money because they are not a store of value nor a unit of account due to the fact that NOT ONE fiat currency's value is actually determined or stipulated in concrete legal terms).  Dollars and Euros and Yens are not even lawfully DEFINED as to what they all are exactly; what their economic worth and transactional value is. Hence, fiat currencies simply cannot constitute the legal foundation of any lawful contract!

(Also, there cannot be either inflation nor deflation in the ABSENCE of money.  Both inflation and deflation are monetary events which cannot take place where there literally is no money.)

What we have today is massive GLOBAL FRAUD mascarading as a monetary system based on the (fraudulent) US dollar because all fiat currencies are basically only a derivative of the US dollar, including the Euro, the Yen, the Yuan, the Rouble, the Shekel and the Riyal.


Why do a few people get the right to print fake fiat money out of nothing and buy your goods and  services with it whereas you have to WORK to obtain the same worthless money created out of nothing?

THAT is the question at the heart of the matter.  That the bankers manipulate interest rates or the price of gold via fraudulent Futures trading (by selling gold that they don't have) with fiat money is a moot point.

To put it differently: why do the bankers get to have anything that they want without working for it and you, you don't?

All this talk about market rigging, monetary theory and fraudulent (paper) gold trading is a cover-up for INJUSTICE.

The US Constitution FORBIDS the use of debt as money; the US Constitution proscribes (debt) notes which is what the US dollar is presently.  Think, all other currencies are just another name for the US Dollar.

What passes for money today is a CRIME, no more no less.


You are all aiding and abetting this crime every time you buy, sell, pay or get paid.

And then you ask, Why our leaders, the politicians, the bankers, and our military men and women are EVIL?

The answer is, because they are just like YOU. They are your sons and daughters.

agNau's picture

ETF reverse splits.

wattie's picture

Global action to represent you wherever you are!

wattie's picture

Global action to represent you wherever you are!

arbwhore's picture

Rubber band can snap in either direction, just sayin'.

luna_man's picture



If it ain't physical and out of the ground, It can go to the moon!  See if I care.

Anarchyteez's picture

Gold crashes back and drags stocks down with it. Plz plz plz!

At least that's what we all should be praying for.

One last time on the triple cheap please god at least one more time please!

Anarchyteez's picture


So far two down votes zero up.

If you would please take a moment to explain why you disagree with the easiest way to get rich we oldtimers would appreciate it.

People like youz make my account grow.

Gawd I miss the old days here. Where's my walker?

mosfet's picture

0% Reasons cited.  100% Wishful thinking.  Again, HOPE is a terrible investment strategy.

GDXJ and most miners remain down or flat for 2 reasons.

1. There is no stock market correction ocurring. Risk-on stocks pour into safehavens only when there's fear (not just uncertaintly).  Gold on the other hand is futures based and can just as easily trade on either USD weakness, JPY strength or fear.  Look at your history... Back in 2010 most miners stopped going up once Gold hit $1600 and many headed down well before Gold hit $1900.  Why?  Because the stock market bottom was in by then and money moved out of safehavens, back into risk-on mode.

2. Anemic miner performance is also the resullt if a very truncated & abrupt halt to the 2016 Gold rally.  Many chased momentum, bought in at the top of what was a short run-up, and now have losses marooned at higher positions.  Those positions represent a strong headwind as investors unload at the first oppurtunity to break-even.  This will take time to work it's way thru the system.

Jubal Early's picture

Juniors, being based on the promise of future gold supply are not backed by anything tangible.  AS such these stocks are easy to manipulate with derivatives and even shorts and outright purchases.  Throw in a few large ETF's like gdxj that have become the main levers used to suppress the gold price and assist in the demonitization of gold.  By keeping these miners starving for capital by suppressing the share prices the money lenders squeeze the wealth balloon to force liquidity into their paper ponzi schemes.

Junior miner prices will remain supressed until they lose control of physical gold prices.  This will probably coincide with the outbreak of war, collapse of the pension system, and a spike in interest rates.

PlayMoney's picture

Reason #3. Thats where the government and the bullion banks want them.

new game's picture

option 4) gold price comes right back down...

s2man's picture

That was the first scenario in the article.

Scuba Steve's picture

Different day, different year, No more monkey king ...

Game on.

Madcow's picture

All the US Governent has to do is pass a law forbitting Asians to think of gold as money and - poof - the gold price collapses. 

Anarchyteez's picture

You should probably add 'sarc' to that post bro.

Davidduke2000's picture

A tiny nuke in the Korean penninsula will send gold over $2500 in a sinle day.

LawsofPhysics's picture

Yes, just remember when fraud is the status quo, possession is the only law that matters.

Anarchyteez's picture

Now that's a damn fact. If not 5!


OCnStiggs's picture

With gold "supplies" waning, those minor miners with known reserves will get gobbled up by the majors. Except for the big Chinese find, not much has been uncovered of late. Time for more exploration.