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Thanks for the comeback.

Pot shops in Seattle to accept bitcoin. 🙂

Misunderstanding GDXJ: Why It’s Actually Great News For Junior Miners

APRIL 27, 2017

Something extraordinarily good for junior precious metals miners just happened. But for some reason it’s being misinterpreted as a bad thing. Here’s the general story:

A Small-Cap Gold Mining ETF Streaks Lower As Big Index Change Looms

(Investors.com) – Mining stocks blazed a bright trail of returns since the start of 2016 as gold saw a renaissance and geopolitical uncertainties rose. That popularity has been double-edged for one gold mining ETF, which is now streaking lower.VanEck Vectors Junior Gold Miners (GDXJ) is set for a major revamp of the underlying index, which will broaden the exchange traded fund’s market-cap range and raise the average size of its stocks.

Torrid asset growth has led to concerns that GDXJ is too big for its index, with massive stakes in some stock holdings making the overhaul necessary, as ETF.com first reported.

For investors in this popular and heavily traded ETF, the changes may mean less small-cap exposure than they have come to expect.

Under the new indexing method, the ETF’s largest company by market cap could be $2.9 billion — vs. $1.8 billion under the current method — putting it over the traditional $2.5 billion limit for small caps.

The index change is set to take effect June 17, but the Junior Gold Miners ETF already has started buying stocks not in the underlying index.

The new names include Alamos Gold (AGI), B2Gold (BTG), Iamgold (IAG), Pretium Resources (PVG), Real Gold Mining and Patagonia Gold, besides a hefty stake in its large-cap sibling, VanEck Vectors Gold Miners (GDX).

They now constitute the ETF’s top holdings and account for more than a quarter of portfolio assets combined.

Asset Haul
Assets in GDXJ have ballooned 270% from $1.3 billion at the start of 2016, making it a $5 billion ETF “attempting to invest in (an approximately) 30 billion gold universe,” as one analyst told ETF.com. As money flowed in, GDXJ ended up owning more than 18% of some Canadian stocks.

That called into question its adherence to diversification rules.

Both tax and securities laws provide diversification standards for funds registered under the Investment Company Act. They limit, in part, the amount of a company’s outstanding shares that a fund may own — no more than 10%, in the case of securities law.

When this story broke, a couple of things happened. First, GDXJ plunged as investors concluded that it’s now a lot

You also notice that the best performing ETF on the list holds junior silver miners. Since your job is to attract investors’ money, how do you respond to this multi-billion-dollar unfilled need? You fill it, of course, by bringing out copycat funds.

In years to come there will be a wave of GDXJ and SILJ wanna-be ETFs. They’ll be smaller than the incumbent funds so initially at least won’t have to worry about owing too much of any one stock. But in the aggregate they’ll end up being bigger than GDXJ, which means they’ll swamp the junior mining sector — which is, as noted above, tiny and illiquid.

The result: a serious, ongoing tailwind for a sector that’s already seeing increased interest from both investors and speculators. Going forward, the juniors will be the hottest part of what should be a very hot precious metals market.

Hi BG,

When I first heard of JPM acquiring a large (very large) hoard of Ag, I thought to myself “uh-oh” – they will figure out a way to use this hoard to control the price.   always in their favor – they will make money as they drive the price up and down.

My guess is that they use the futures (paper) to bomb the price down.   the hoard is used to back up any contracts that dare to demand physical.

If necessary they will collude with their Bullion buddys and shuffle piles of physical back and forth.   controlling the price and always keeping the physical inside their club.

Just a guess on my part.

“However, the volume of silver ounces transferred daily increased 18.4% to 203.2 million. The corresponding value transferred rose 16.5% to $3.57 billion. The number of daily transfers rose by 8.2% to 924, with the clearers settling on average 219,799 ounces per transfer, up of 29% compared to the previous month.”

So how does volume and transfers increase – and prices decrease – unless the transfer’s are all sellers of phyzz? In that case, if every trader was looking to unload phyzz, shouldn’t the price be much lower? How many daily transfers were settled in cash?

Farmboy, please stop hurting what’s left of my brain!

Will do. Please don’t expect an answer any time soon because as you know getting a couple of brain cells revved up takes a little bit of time. 🙂

Holy crap, Fat Boy did a missile test! We need to send troops, missiles, nukes, everything!

All I know ol’ buddy is if they need war to cover their crimes here in the states, they’ll figure out a way to start something.

Have a great weekend!

over at your favorite News Service (Kitco) they have a short article. Check out the near the last paragraph about all the ‘Silver Transfers’ that have been going on. Would like your thoughts on the meaning of if you don’t mind. Too much for my two cells, plus they are over worked today. 🙂

http://www.kitco.com/news/2017-04-28/Gold-Trading-Activity-Remains-Down-After-Flat-Gains-In-March.html

I’m outta here, TGIF !!

Commish: Do You know how hard it is to find a car, or truck, in MY color ?! 🙂

Mr: Copper: Fishing of late doing about as good as my tradin. When you’re hot you’re hot I guess. And today I would rather have been fishing rather than sitting mostly at the dumb computer, but I had a goal I was hoping to reach at months end. Just barely made it. Saving up some bait money, maybe next Friday?

BREAKING NEWS: N. Korea just fired off a ballistic missle test. You know, whatever happens to the fat boy he deserves !!

Things in the PM pits could look MUCH different by Monday, that’s for sure.

Make it a Great weekend folks.

Didn’t know what ended up happening at Incirlik. Didn’t know we had a base in Syria.

Definitely ought to get our nukes out of there before we bomb Turkey.

What an absolute mess.

This all seems to be a nice money maker for the Military Industrial Complex, can’t see a single reason for us to even be there otherwise.

Thanks for the clarification. 🙂

I read someplace that we’re shutting down Incirlik Air Base in Turkey and moving all the planes and facilities to Syria (Syria and Iraq?) I suggest we close the base and remove the nukes from there before we go to war with Turkey …

PS I was just looking for that story and couldn’t find it. I dunno

Here’s the story … from Debkafile so who knows?

US Air Force to quit Incirlik, move to Syria base

http://debka.com/article/26004/

US Deploys Troops Along Syria-Turkey Border

US troops and armored vehicles have been deploying along the Syrian-Turkish border, days after a Turkish airstrike killed 20 U.S.-backed Kurdish fighters. The US involvement is meant to send “a message of reassurance for the Kurds and almost a warning message.” It also may lead to military conflict between the US and Turkey.

“The Turkish airstrikes also wounded 18 members of the U.S.-backed People’s Protection Units, or Y.P.G., were criticized by both the U.S. and Russia. The YPG is a close U.S. ally in the theatrical fight against the Islamic State (whose real purpose is destabilizing the Assad regime); it is seen by Ankara as a terrorist group because of its ties to Turkey’s Kurdish rebels. The problem is that Turkey is also an ally of the US, although over the past two years relations between Turkey and all western NATO allies have deteriorated substantially for numerous familiar, and extensively discussed in the past, reasons.

On one hand, further clashes between Turkish and Kurdish forces in Syria could potentially undermine the U.S.-led war on the Islamic State group. On the other, it risks taking an already unstable situation in Syria and escalating it substantially, should Turkey again find itself invading Turkey and/or Iraq.

Which is why the US appears to have deployed troops along the border: to serve as a deterrent to further Turkish attacks.”

Farmboy – nice trade yet again. You best be submitting your resume to Goldman and JPM! 🙂

R640 – I suspect as usual we are all being played on the NoKo thing, lots of huffing and puffing and no houses blow down. China has it under control IMHO. Maybe they’ll need a little false flag to oust Fat Boy that gives gold a temporary spike, but nothing lasting. Just a guess.

Other than that, the Fed meets next week, no hike expected, the hike talk will be all that matters.

Gold will go either up/down. Probably 30/70 odds. 🙂

Have a great weekend everyone!

I felt bad about what happened. It was an unfortunate set of circumstances.

… the mercury aside. 🙂

“The CIA has been deeply humiliated.”

The ‘painful dentist’?  I remember two of ’em.  Both were mercury pushers.

eeos… Wow!  Harvest Right home freeze-dryers.  I’ve often thought that would be the way to go.  Didn’t know they were available.

I guess today must be considered a “great day” for gold  cause we finally close up 3 bucks—yet silver down 8 cents—really pathetic—the only thing positive is the that gold is somewhat resilient. If war breaks out with NOKO then gold rallies for a week or so—like after 9-11—then gives it all back—it’s really like rolling a boulder up a cliff….just kidding about “weekend war”…we’ll try head games 1st…but, frankly, I think war is inevitable.

Shall in these confines with a monarch’s voice, Cry ‘Havoc,’ and let slip the dogs of war;

That this foul deed shall smell above the earth–With carrion men, groaning for burial.

O, pardon me, thou bleeding piece of earth,That I am meek and gentle with these butchers!
Thou art the ruins of the noblest man
That ever lived in the tide of times.
Woe to the hand that shed this costly blood!
Over thy wounds now do I prophesy,–
Which, like dumb mouths, do ope their ruby lips,
To beg the voice and utterance of my tongue–
A curse shall light upon the limbs of men;
Domestic fury and fierce civil strife
Shall cumber all the parts of Italy;
Blood and destruction shall be so in use
And dreadful objects so familiar
That mothers shall but smile when they behold
Their infants quarter’d with the hands of war;
All pity choked with custom of fell deeds:
And Caesar’s spirit, ranging for revenge,
With Ate by his side come hot from hell,
Shall in these confines with a monarch’s voice
Cry ‘Havoc,’ and let slip the dogs of war;
That this foul deed shall smell above the earth
With carrion men, groaning for burial.

Looks better for silver, but gold – not so much.

http://www.cftc.gov/dea/futures/deacmxlf.htm

I can never decide what rabbit is going to get pulled out of the hat next. They have alot of money and time tied into projects I’m not sure they’re going to be able to bring to fruition on a timely basis. Lots of pies in the sky. But if they can get The Magic Leap to work it’s a big deal and they don’t even mention it in this write up. The 3D mapping potential is huge in VR, and the AEC industries.

http://www.hongkiat.com/blog/google-products-and-future/

Hi Mr. Copper. Hope you’re having a nice day. I was asking for you to come over here for years. Love reading your thoughts

The climb looks impressive, but on my chart going back to mid Jan 2016, shows its up only 31% right now.

http://schrts.co/4iwqGl

If you don’t believe in conspiracies this might change your mind. I was not going to listen to this because of its length but I ended up listening to every second. What you have been told is all bullshit. Your own government did it because they couldn’t shut him up, just as governments the world over have been doing for centuries.

Only thing about trading on Friday less a KFS ” know for sure”  is anything can happen between now and Monday.

Wonder if Trump can have a throw down and make a executive order that any senators who shut down the gov don’t get back pay for the time it’s down.

…trying to get started in the metals.  it’s a little late on friday afternoon for it to have a lot of legs, but it might set up something nice for monday morning.