Only if we get what I refer to as a mostly “unidirectional” rally in the jr. miners. While that is certainly possible, I can’t make a very strong case for it. Rather, the case I’m making is a potential start to the next leg up in a larger bull market in gold & the miners following a bull market correction.
Due to the leverage on JNUG, periods of choppy back & forth price action such as consolidation periods & corrections will cause price decay (see my FAQ question under Resources>FAQ’s & More>Frequently Asked Questions>ETF Related Questions>Is there a disadvantage for holding a leveraged ETF/ETP for an extended period of time?
My best guess is that we’ll probably see a nice rally in the miners & metals from here & if so, JNUG & NUGT could outperform (i.e.- more than 2x) over GDXJ & GDX for the initial leg up. However, if planning to tuck away the position for a while it might be best to stick with GDX and/or GDXJ to not risk the potential for decay if they grind around for a while.