Paul Rice

GDX AND GDXJ: THE CORRECTION HAS CREATED TWO COMPLETELY DIFFERENT MARKETS I analyzed the performance of 150 securities associated with GDX and GDXJ, including the 44 new companies added to GDXJ in the September rebalancing. The period begins on January 29, 2026. This date is not arbitrary: it marks the beginning of the correction that remains in effect across gold and silver mining stocks. The ranking shows both the cumulative return and the risk experienced by each security throughout the corrective move. Here is how to interpret the tables: ▪️ Return %: Cumulative return since January 29. ▪️ Maximum Drawdown: The largest peak-to-trough decline during the period. It represents the worst decline an investor would have experienced. ▪️ Current Drawdown: The percentage by which the security is currently trading below its highest level during the period. The difference between the two drawdowns reveals whether a company remains near its lows or has already recovered a significant portion of its decline. The leaders have delivered exceptional returns: 🥇 Minerals 260: +76.00% 🥈 Liberty Gold: +75.21% 🥉 Apex Mining: +66.67% ▪️ Banyan Gold: +65.55% ▪️ New Pacific Metals: +53.93% ▪️ Aya Gold & Silver: +51.88% ▪️ NorthIsle Copper & Gold: +51.64% It is particularly significant that several of the new GDXJ additions already rank among the companies displaying the greatest relative strength. However, market breadth remains weak: 🔵 Only 45 of the 150 securities analyzed have generated positive returns. 🔴 The remaining **105 securities—approximately 70% of the universe—**are still posting losses since the correction began. The ETFs themselves reflect this weakness: ▪️ GDX: −10.08%, with a maximum drawdown of −38.93% and a current drawdown of −16.18%. ▪️ GDXJ: −12.72%, with a maximum drawdown of −41.32% and a current drawdown of −19.71%. At the bottom of the rankings, we find some substantial losses: 🔻 New Found Gold: −59.95% 🔻 Hycroft Mining: −53.68% 🔻 Asante Gold: −53.14% 🔻 Pantoro Gold: −52.38% 🔻 Guanajuato Silver: −52.20% 🔻 TRX Gold: −48.17% The conclusion is clear: the recovery is not yet broad-based. While a small group of companies has clearly broken away from the corrective trend, most remain below their January 29 levels, and many are still trapped in very deep drawdowns. Even the leaders have experienced declines of more than 30%, 40%, or 50% along the way. Identifying a winning company has not been enough—investors also needed to endure extreme volatility. This ranking demonstrates three things: Stock selection has been crucial. The future leaders are already beginning to separate from the rest. The sector-wide correction cannot yet be considered over. The indexes remain weak, but beneath the surface, a major redistribution of relative strength is already underway. This is not about buying just any mining stock. It is about identifying today the companies that will lead the sector’s next major advance. #Gold #Silver #GDX #GDXJ #GoldMiners #JuniorMiners #MiningStocks #Drawdown #RelativeStrength #StockSelection