Sprott Junior Gold Miners ETF

SGDJ

Market cap $284M

Trade war jitters rise, but ETFs like MSOS, SILJ, SGDJ, BBC, WISE & CTEX shine on solid fundamentals, offering either safe havens or growth potential.

Sprott Junior Gold Miners ETF maintains a "Hold" rating amid strong momentum but heightened volatility and technical overbought conditions. SGDJ's valuation is attractive with a low P/E ratio and high EPS growth, but near-term correction risk is elevated after a 130% YTD surge. Goldman Sachs is bullish on gold's long-term prospects, while BofA warns of a potential short-term pullback; I lean toward BofA's caution.

Gold surges 41% YTD and hits records as Fed cuts rates, dollar displays weakness and ETF inflows fuel demand, bringing GLD, IAU, SGDM and more into the spotlight.

The Federal Reserve's recent rate cut of 25 basis points could amplify gold's current rally. Prices have already broken through the $3,700 price mark, and another record high could hinge upon how aggressive rate cuts will be in the coming months.

The prospect of interest rate cuts this month and through the rest of the year is elevating prices for gold, but silver is also benefiting. The precious/industrial metal crossed the $40 price mark in the first week of September, which it hasn't done since 2011.

As acceptance for nuclear energy usage becomes more widespread globally, the infrastructure in which it operates is also evolving. The United States, for example, is looking towards smaller, more efficient reactors that require higher uranium enrichment.

RomanR / Shutterstock.com For one, gold is pushing higher after a U.S.

Gold mining ETFs -- GOEX, AUMI, SGDJ and GDXJ -- are hovering around 52-week highs, fueled by gold's safe-haven demand, central bank buying and a weaker dollar.

Central banks' willingness to buy more precious metals should help buoy prices for both gold and silver. Around the globe, central banks continue to quench their thirst for both, providing investment opportunities in ETFs with exposure to both metals.

If investors are mining for opportunities, the Sprott Gold Miners ETF (SGDM) should be on their list. The ETF is up over 70% this year.