One of the more interesting developments in the resource sector over the past few weeks has not been the gold price itself. It has been the behaviour of gold mining equities.
After months of frustration, the VanEck Gold Miners ETF (GDX) has broken above a downtrend that had been in place since February. Meanwhile, the TSX Venture Composite Index (JX) remains below a remarkably similar trendline, although recent trading suggests it may be starting to close the gap.
At first glance, the comparison may seem odd. The TSXV is not a gold index. It includes companies exposed to gold, copper, silver, uranium, lithium, rare earths, technology and even biotechnology.
Yet the relationship may be more important than it appears.
In this note, I look into the relationship between gold miners and TSX-V-listed companies, and a fascinating possibility that may be emerging in real time.
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