Our junior gold index contains 20 stocks that are weighted equally. The median market cap is around $300 Million. We changed the construction of it in 2008, 2011 and recently. Some juniors fail, some grow out of junior status and some are acquired. Hence, a junior index is constantly changing.
Our junior index rallied strongly out of the December low, even exceeding the 2013 summer high. Yet, the index now looks headed for a test of that December low.
This chart plots Gold and our index against Gold. It has been a good leading indicator as it made a new high in 2006 before Gold. It also peaked in spring 2007 before Gold and in early 2011 before Gold. Has it now bottomed before Gold? Only time will tell.
There is much more analysis and similar charts in our premium updates.