Question 1

What is XAU and how does it relate to gold mining ETFs?

Accepted Answer

XAU is the currency code for gold (from the Latin 'aurum'). It represents the price of one troy ounce of gold in USD. When analyzing gold mining ETFs like GDX and GDXJ, the XAU/GDX ratio is a key indicator - it shows whether miners are cheap or expensive relative to the gold price. A high ratio indicates miners are undervalued.

Question 2

How does the Miner Sentiment Meter work?

Accepted Answer

The Miner Sentiment Meter uses the Gold/GDX ratio to determine if gold miners are overvalued or undervalued relative to the gold price. Based on 20 years of historical data (2006-2026), when the ratio is above 65, miners are 'very cheap' and have historically returned +56.5% on average over the following year. When below 30, miners are expensive and tend to underperform.

Question 3

What is the best gold mining ETF?

Accepted Answer

The best gold mining ETF depends on your investment goals. GDX (VanEck Gold Miners ETF) offers exposure to large-cap senior miners with lower volatility, while GDXJ (Junior Gold Miners ETF) provides higher growth potential with small-cap miners but more risk. GDX has an expense ratio of 0.51% and tracks 53 holdings, while GDXJ has 0.52% expense ratio with 98 holdings.

Question 4

What is the difference between GDX and GDXJ?

Accepted Answer

GDX invests in large-cap senior gold mining companies like Newmont and Barrick Gold, offering more stability. GDXJ focuses on junior (small-cap) gold miners with higher growth potential but more volatility. GDXJ typically moves 1.2-1.5x more than GDX during gold price swings, making it better for aggressive investors.

Question 5

Is GLD or IAU better for gold exposure?

Accepted Answer

IAU has a lower expense ratio (0.25%) compared to GLD (0.40%), making it more cost-effective for long-term holding. GLD has higher liquidity and tighter bid-ask spreads, making it better for active trading. Both track physical gold prices and are backed by gold bullion in vaults.

Question 6

Should I invest in gold mining ETFs or physical gold ETFs?

Accepted Answer

Physical gold ETFs (GLD, IAU) track gold prices directly with lower volatility. Mining ETFs (GDX, GDXJ) offer leveraged exposure to gold - they typically move 2-3x the percentage of gold prices. Mining ETFs can outperform during gold bull markets but underperform during bear markets.

Question 7

What is the gold market cap?

Accepted Answer

The total gold market cap (all above-ground gold) is estimated at over $13 trillion. This includes central bank reserves, jewelry, investment gold, and industrial uses. The gold mining ETF market cap (GDX + GDXJ combined) represents only a fraction of this - around $20-30 billion in assets under management.

Name	Category	Price	24h	7d	Expense Ratio
NYSE Arca Gold BUGS Index HUI	Miner Index	$898.97	-7.99%	-3.55%	0%
VanEck Gold Miners ETF GDX	Senior Miners	$105.24	-8.76%	-4.93%	0.51%
VanEck Junior Gold Miners ETF GDXJ	Junior Miners	$141.22	-8.91%	-3.98%	0.52%
SPDR Gold Shares GLD	Physical Gold	$482.66	+1.08%	+5.32%	0.4%
iShares Silver Trust SLV	Physical Silver	$84.60	+5.15%	+20.69%	0.5%
iShares Gold Trust IAU	Physical Gold	$98.88	+1.11%	+5.35%	0.25%

Name	Category	Price	24h	7d	Expense Ratio
NYSE Arca Gold BUGS Index HUI	Miner Index	$898.97	-7.99%	-3.55%	0%
VanEck Gold Miners ETF GDX	Senior Miners	$105.24	-8.76%	-4.93%	0.51%
VanEck Junior Gold Miners ETF GDXJ	Junior Miners	$141.22	-8.91%	-3.98%	0.52%
SPDR Gold Shares GLD	Physical Gold	$482.66	+1.08%	+5.32%	0.4%
iShares Silver Trust SLV	Physical Silver	$84.60	+5.15%	+20.69%	0.5%
iShares Gold Trust IAU	Physical Gold	$98.88	+1.11%	+5.35%	0.25%

Gold Mining ETFs & XAU Price Tracker

Mining Stocks — ETF Holdings

GDX vs GDXJ: Which Mining ETF is Better?

GDX - Senior Miners

GDXJ - Junior Miners

Frequently Asked Questions