Keith RichardsMarket Vectors Jr Gold Miners ETFGDXJSELLMay 25, 2023

MER is about 51 bps. When you're looking at the gold market, you want to buy the physical metal for the first leg up, as a lot of the companies will lag. Then the larger caps catch on, often as proxies to gold exposure. Only then do the small caps start to catch a bid, and that's where we are now. Still underperforming a bit, but the timing is pretty good.

We're at an interesting inflection point. See his Top Picks.

This name is further down the food chain. Take a look at the more interesting mid-size players. Still, he's been lightening up on gold. With a strong USD, and interest rates possibly being higher, gold may take a few steps back. So he's waiting to see how things shake out.

XGD and ZGD are the Canadian go-to names. ZGD is equal weight, so the big caps don't run the show.

In the US, he likes GDX or GDXJ (for the juniors).

Fall usually a good season for gold.
Pressure on gold supply from US Treasury tough on gold prices this year.
Looking to buy some gold in the next 1-2 quarters, waiting for weakness in gold prices.

Good for when US Fed rates cuts interest rates.
Not a great spot for gold now.
Wait to buy.
Lots of short term noise that is bad for gold. 

Likes gold, but prefers the mid-size and juniors for more upside, better valuations, more opportunities. Starting to bounce, but still more potential in some of those names. Doesn't want the big players. 

USD weakening, especially if interest rates peak, should benefit gold. Gold stocks are trading at multi-decade lows. The ETF avoids taking on geopolitical or individual mining risk. There's more growth here than in the larger players, plus more potential for takeout activity.

GDXJ gives him blanket exposure in gold. He owns a lot of gold stocks, including Newmont, Barrick and Kirkland Lake. You can get exposure to juniors through Dundee Precious Metals (he owns). All are interesting. GDXJ is not a bad way to get gold exposure.

Gold producers? He prefers to own the Royal Canadian Mint (MNT) and Sprot (PHY.US) and Franco-Nevada (FNV). He likes the physical element. He would also consider the Junior Miners ETF (GDXJ). At some point, there will be a role for gold to help the economy recover.