Sprott Junior Gold Miners ETF

SGDJ

Market cap $307M

Silver and gold have delivered extraordinary momentum in 2025, driven by soaring spot prices and supportive monetary signals, including a near-90% implied probability of a December 10 rate cut. While miner ETFs can outperform their underlying metals during strong bull cycles, they also carry amplified downside risk, which is greater now as silver and gold trade near all-time highs. Year-to-date, my five silver and gold ETFs are up an average of 153% and offer an average five-year dividend growth rate of nearly 26%.

Gold prices hit an apex in October before taking a breather as 2025 winds down — a chance for investors to buy the dip. This could be a golden opportunity to get exposure to a pair of ETFs before another rally ensues: the Sprott Physical Gold Trust (PHYS) and the Sprott Gold Miners ETF (SGDM).

The holiday season not only presents an opportunity to spend time with loved ones, it also allows investors to tilt their portfolios towards assets that can capture short-term upside. One of those is gold.

In cases where an asset is in the midst a strong rally, investors are typically gripped with the fear that they already missed out on the major move. That doesn't appear to be the case with gold, which should be approached with a strategic allocation strategy in mind as opposed to simply chasing gains.

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.

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