Junior Gold Miners: Insiders Have Stopped Buying: GDXJ

Another interesting tidbit from Neil Leeson of Ned Davis Research: Executives and other key insiders at junior gold-mining companies are no longer buying their own companies’ stocks. 

Last year, as the sector plunged in value, insiders at these small mining companies were snapping up shares consistently. But the activity vanished around the same time the sector’s stock prices began to soar. The accompanying chart, from NDR, shows insider activity in the shaded red portion. It’s based on the constituent companies of Market Vectors Junior Gold Miners ETF (GDXJ).

The dry-up in insider buying is just one of the items Leeson mentions this week as he advises clients to take profits in gold and gold-mining companies.

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