SGDJ
Sprott Junior Gold Miners ETF
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First, miners as a collective group are a terrible investment. I recently wrote an SA article about that. Having said that, $SGDJ is better than most of the miner ETFs.
I prefer the indexes. GDX, GDXJ, SIL, SILJ, SGDJ. They are at an ATH and will likely have a correction this year at some point but it's onward and upward if you can buy and hold.
They basically all doubled. But so did gold essentially, and these should have a parabolic relationship to the gold price, so I’m still long SGDJ significantly.
$SGDJ is +25% since this post
GDXJ for gold, SILJ for silver. SGDJ has more speculative gold juniors, whereas the previous two are mostly already producing smaller miners, but it's illiquid. No good options for base metals.
SGDM is better researched as they have cleaned out some of the rotten eggs from GDX by being Sprotts own index. THat said; they have historically performed practically the same. I hold SGDM and also SGDJ being their small cap gold miners which is very different (much small caps) than GDXJ. For the "safer" option I like GOAU as it is very streamer/royalty focused.
Exactly hedging I commodity baskets such as $GDX $SGDJ $SIL $SILJ Is a very good way of exposing yourself to the market while minimizing risks.
WallSt for MainSt has done multiple shows about how they lie about their AISC. First off I doubt Buffett himself had anything to do with Barrick. Second, BRK sold off their position unless Im mistaken Third, as I said analysing a mining company is not like any other business. The more ounces they sell today, the less ounces they have available for the future. Barrick bet on gold prices remaining relatively low, so they didnt acquire many new projects from developers when the juniors were cheap in 2019. Now? Those juniors have gone up 3x and can finance on their own. If Barrick or whoever wants to buy anything they will find that their bargaining power is diminished. Their jurisdictions are poor, they ran into some trouble with New Gunea recently. Agnico only has permitted operations in North America and that itself commands a certain premium. If you want to roll dice with jurisdictions, then do it with a junior IMO and capture some leverage. As I said, Barrick has a history of hedging their future production. You might think, okay their AISC is 1200 so with gold at 1800 they make 600/oz....if gold goes to 2400 you may think "okay their profits have now doubled"....but they wont because they hedged at 1850 or less. I just made those numbers up by the way, I havent looked at what they actually are recently. I have other positions that Im happy with. If you like dividends, Newmont made a policy of pegging their payout to the gold price recently FWIW. If you look at Barricks chart, they basically match the GDX tick for tick. You are only going to capture the sector's beta...which is fine I guess. But if thats what I wanted to do I'd just get GOAU or SGDJ or something and call it a day. And just for disclosure I dont have positions in any of the stocks I mentioned except for Sandstorm. My mining exposure is mostly in the silver miners and a few gold and uranium juniors