KITCO NEWS - Van Eck's Market Vectors Junior Gold Miners ETF - also known as the (GDXJ) - is overheated with assets jumping 60% to over $5 billion this year and according to active fund manager Frank Holmes, investors should be careful. Is it too big to succeed? 'The problem is massive capital is going into the GDXJ and then the index changes,' he told Kitco News. Holmes explained that the index is expanding its scope into larger miners, which is hurting the small cap gold stocks 'for no reason.' As for the gold price, Holmes said investors should expect more volatility ahead of the French election over the weekend.

 

This article is commentary by an independent contributor.

More from Video

Video: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Video: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Venture Capitalists Are Still Feverishly Searching for the Next Facebook

Venture Capitalists Are Still Feverishly Searching for the Next Facebook

Stocks Move Lower on Trade Fears and 4 Other Stories You Must Know Wednesday

Stocks Move Lower on Trade Fears and 4 Other Stories You Must Know Wednesday

10 Seconds to Genius: Lowe's New CEO Marvin Ellison

10 Seconds to Genius: Lowe's New CEO Marvin Ellison

Replay: Jim Cramer on the Markets, Oil, General Electric, Zillow and Micron

Replay: Jim Cramer on the Markets, Oil, General Electric, Zillow and Micron