Good to see Van Eck adding Regis to its holdings for the GDXJ....

Good to see Van Eck adding Regis to its holdings for the GDXJ.

When I looked at the GDXJ holdings a few weeks ago I was surprised to see that Regis was not a constituent given it is among the largest 5 gold producers on the ASX. It seems most of these shares were acquired during the rebalance (~26 Million traded on 19/12 close).

Since the substantial holder notice showing ~29 Million shares Van Eck has added another 2.7 Million (see http://www.vaneck.com/market-vectors/equity-etfs/gdxj/holdings/). This represents ~30% of the traded volume in the last 3 trading days.

I guess the next question is when does Van Eck stop buying? In many of the other gold stocks once Van Eck starts buying it can last for months (even when the stock is in a downtrend). Having said that the stakes in RRL and NST are now comparable and each has a similar market cap.

My feeling is that the GDXJ buying is not over yet and this will put good upward pressure on the share price in the months to come. It also creates good competition among buyers if the shorters begin to cover.