Rick Rule: An extraordinary arbitrage opportunity in junior gold miners
From Sprott U.S. Media:
Rick Rule perceives a significant market dislocation as the GDXJ Junior Miners ETF enters an unusual rebalancing exercise.
The GDXJ Junior Miners ETF has outgrown its market says Rick Rule, the CEO of Sprott US Holdings, who believes the ensuing rebalancing exercise will create imbalances in the cost of capital for these small firms which, in turn, may create significant arbitrage opportunities for investors.
[00:03] Remember who the boss is.
[01:00] What’s happening with the GDXJ ETF? What arbitrage opportunities do you see?
[06:30] What are GDXJ holders really holding?
[09:23] Has this been fully priced in?
[12:58] This is a catalyst for individual companies to align to the new cost of capital
[15:59] The money is chasing volatility not opportunity
[17:37] Will there be more or fewer miners as a result of this development?
[19:25] Don’t miss Rick’s seminar on the rebalancing in Vancouver.
Crux note: Rick will be joined by Dr. Steve Sjuggerud, Jim Rickards, David Stockman and many more in Vancouver next month to discuss this once-in-a-lifetime opportunity in the resource markets. Right now, you can sign up for early bird tickets until June 24. Get all the details right here.