Now is the time where the mettle of true contrarians is tested. And the rewards for the brave can be legendary, especially in the beaten-down junior gold stocks. As seen in the first chart, the juniors (GDXJ and GLDX) have big downside leverage to the larger less-risky major producer stocks (GDX). But when gold stocks are in favor, and the majors start to rally, the juniors usually provide big positive leverage.
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