What GDXJ Rally Really Means for Juniors Miners -- Frank Holmes

With the GDXJ seeing huge inflows, could the ETF be too big to succeed?
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KITCO NEWS - Van Eck's Market Vectors Junior Gold Miners ETF - also known as the (GDXJ) - Get Report - 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.