BMO Junior Gold Index ETF (ZJG-T)

Junior gold miners. It is not linked to gold. They go up and down relative to the price of gold, but many don’t have production. He thinks gold is going to break out and will pop to $1350. It should retest last year’s highs. Junior gold stocks should test highs also. He does not like the speculative names.

Juniors are pricing in gold at $1500. They have had a tremendous run already. They may lose momentum for a week or two, relative to the price of gold, and when that happens you should tighten up your stop.

Gold could go up if we go into a difficult market. He would consider selling it, however. He would scale out of it rather than buying more.

This is about the only one on the juniors. He is not a gold bug. If you like Junior golds, this is as good as it gets.

When gold was testing $1050 he would say yes, but we have had the strongest rally in gold in several years. He thinks we will peak out at $1300 this cycle.

This is junior golds. Sometimes they operate differently than seniors. There seems to be support about $4.80. You are getting some declining peaks. He would want the most recent one taken out before considering it.

(Top Pick Sep 26/14, Down 33.09%) He will stick with it. Don’t average down. If you get a turn, then you can start to add on again. He would give it another few weeks to see if this is real.

Typically Gold does well from July into October. In May and June you get the weakest months of the year. Pushing off interest rate announcements affects gold also. Juniors have more leverage so it is a higher risk trade.

(A Top Pick Sept 16/14. Up 0.43%.) This is now starting to outperform and we are in the early stages. It is still too early, but we are just beginning and it still has more to go. If you own, stay with it.

Similar to GDX-N, is the Junior gold index in Canada. He does not think gold will take off in a big way until we have inflation.