Chart of the Day - Monday, August 26th, 2019

Today’s Chart of the Day was shared on Twitter by John Palicka (@John_Palicka). It's a chart comparing the performance of the Gold ETF ($GLD) to the Gold Mining ETF ($GDX) since 2006. The chart addresses a common question among Precious Metals bulls right now: which will outperform, Gold or Miners? John points out that when Gold is breaking out, Miners tend to outperform in the short-term because they are leveraged to Gold. however, over the long-term, Miners have operational inefficiencies that come into play and they end up underperforming Gold. So far in 2019, Gold is up nearly 19% while Miners are up twice as much (40%). It'll be interesting to keep an eye on the relationship between these two ETFs to see which is a better vehicle to play a rally in Precious Metals over the long-term.