ZJG, Canadian Gold Stock, ETF Review

 

 

I’m sure many gold stock bull riders are in some degree of panic right now, as gold stocks are crashing. Contrarians don’t panic, as they know catching what others throw away is just buying on the dips.  They always have some orders in at lower prices, with GTC orders. These orders can be done days ahead of time, so you never have to hang on the screen risking an emotional decision. 

Eventually this ETF should clear all 2016 highs. We are still in what I call a “C” wave bull market. These “C”waves can be relentless once a good one gets going. If short term trading is on your mind, then you never want to miss a “C” wave bull market.  

Due to the fear factor very few of the majority will buy into a falling knife, so most of us will miss these “C” waves when they do come.  I added to my positions in this ETF recently, and will hang in there until such a time when all the bulls are back!  If ZJG makes the $20 price level a year or so from now, that would be great.  At the same time, many of my indicators must be flashing their pretty red lights, especially when the ratios start to get out of wack. 

I still have to back check more with the Gold/Zjg ratio, but today we are sitting at 149.5:1. Just a quick check for a high extreme ratio reading, we are looking at about 56:1  All we need is two extreme Gold/ratio readings, but 4 extreme readings would be better. This is one of the few ETFs that I have to build a good ratio base from scratch. The problem is the ZJG does not have a long historic record.  

Many times when I explain ratios  they always want to try and forecast the price of gold. Doing it that way destroys the stability of the gold Troy ounce and you are no longer using gold as money.   Gold companies can come and disappear like Bre-X did in mid 1990s, but gold has survived for thousands of years, and still makes the best measuring tool today. 

 

Hits: 0