Since September 11th, gold has gained 7.8% vs. the junior gold miners ETF (GDXJ) rising 18.36% and the gold miners ETF (GDX) rising 21.74%. However, the TSX Venture Composite Index has actually declined by 19.65% during this period due to institutions who profited big on TSX Venture cannabis stocks engaging in tax loss selling of their TSX Venture gold exploration/mining stocks in late-2018.
Now that all tax loss selling pressure is gone, the TSX Venture is beginning to outperform big time. Over the past week, gold has gained 1.99% vs. the TSX Venture Composite Index rising 8.32%, the junior gold miners ETF (GDXJ) rising 6.52%, and the gold miners ETF (GDX) rising 3.39%.
One of the biggest victims of tax loss selling was First Mining Gold (TSX: FF) a company that acquired dozens of different microcap TSX Venture gold explorers in recent years - issuing stock to the shareholders of each company it rolled up. After underperforming for months along with the TSX Venture Composite Index, FF over the last two days has exploded by 63.26% in value!
Any day now, we will see Fiore Gold (TSXV: F) reprice in value to the upside similar to what FF has done in recent days.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.