VanEck Junior Gold Miners ETF

GDXJ

Market cap $8.75B

Silver extended its decline for a third consecutive session on Monday, with XAG/USD trading around $74.20 per troy ounce during Asian hours. Investors reacted to India's surprise restrictions on silver imports, rising expectations of another Federal Reserve rate hike and weaker investment demand projections from UBS.

U.S. Gold Corp (NASDAQ:USAU) announced that it is set to join the VanEck Junior Gold Miners ETF (GDXJ) following the fund's latest quarterly rebalance, the company said Wednesday.

I expect gold to reach $6,000/oz by mid-2026, driven by shifting macro factors and central bank accumulation. Combining IAUI and GDXJ offers both high yield (~7%) and leveraged exposure to gold price growth. A 50/50 IAUI+GDXJ portfolio achieved a 46.65% 6-month return, outperforming spot gold and balancing yield with capital appreciation.

Gold and gold mining ETFs remain a 'buy' as structural drivers—central bank buying, de-dollarization, and fiscal deficits—support sustained high gold prices. Miners like Agnico Eagle, Newmont, and Kinross are generating record free cash flow, strengthening balance sheets, and increasing shareholder returns. Despite a 65% gold rally in 2025, miners still trade at valuations assuming lower gold prices, presenting a valuation gap and further upside potential.

Rising gold and silver prices in 2025–2026 have driven a step-change in mining company profits and cash flow. Amplify Junior Silver Miners ETF returned 184.02% in 2025, far outpacing spot metals prices. Miners' net profit margins now rival tech giants, with cash flows accelerating—Newmont Mining's free cash flow rose 150% year-over-year.

GDXJ: Gold Miners Are Making Massive Profits, With Prospects Of Strong Returns In 2026

Silver, gold & platinum ETFs (SLVP, SILJ, GOEX) crushed it in 2025, while MEME & VIXY lagged.

Silver, gold & platinum ETFs (SLVP, SILJ, GOEX) crushed it in 2025, while MSOS, MEME & VIXY lagged amid policy, hype & calm markets.

VanEck Junior Gold Miners ETF is rated Hold due to elevated prices and potential for sharp corrections despite strong recent momentum. Central bank gold accumulation, especially by China and Russia, alongside declining USD value, has driven gold to record highs and boosted GDXJ returns. Lower interest rates and persistent geopolitical tensions support further upside for GDXJ into early 2026, but caution is warranted as momentum can reverse quickly.

GDXJ just broke to a new 52-week high as as gold demand surges on Fed rate-cut expectations, central bank buying and economic uncertainties.