BUSINESS

Reviewed by Thomas Brock
Fact checked by Suzanne Kvilhaug

Gold often plays a defensive role in long-term portfolios as a hedge against inflation, currency risk, and market turmoil. This is because of its low correlation with other assets—it doesn’t simply rise and fall with the stock market, real estate, etc.

However, with short-term trades, gold mining exchange-traded funds (ETFs) offer a more dynamic opportunity. They’re more volatile, but also highly liquid, while tending to amplify gold’s price moves, which means more trading setups. These ETFs respond well to technical analysis indicators like the relative strength index (RSI) and moving average convergence divergence (MACD), and relative strength ratios, making them suitable for trend-based strategies.

Key Takeaways

• Some gold mining exchange-traded funds (ETFs) offer indirect leveraged exposure to gold prices and are great for short-term trading because of their volatility and liquidity.
• Technical analysis is very useful for navigating gold mining ETFs, helping to identify trends, confirm momentum, and manage risk.
• Other useful tools for confirming trend strength and gauging market sentiment are the GDX/GLD and GDXK/GDX ratios.
• Higher swing highs and lows in both gold and mining stocks signal trend sustainability and institutional conviction.

Understanding Gold Mining ETFs

Gold mining ETFs give traders and investors exposure to the performance of gold mining companies versus gold ETFs, which provide exposure to the physical metal. This makes gold mining ETFs more dynamic, but riskier, than a pure gold play.

These funds are driven not only by gold prices but also company-related and geographic factors like management and production costs. Generally, they’re more volatile but can outperform in bull markets thanks to operating leverage, and some even pay dividends. Gold itself is more stable and often used as a hedge against inflation or as a safe haven in a crisis.

Using Technical Analysis for Gold Mining ETFs

Technical analysis indicators and tools like moving averages, RSI, MACD, and volume indicators help traders identify trends, confirm momentum, and manage risk.

Support and resistance levels, swing highs and lows, are for timing entries and exits, while volume spikes often signal institutional moves. Moreover, studies show that trend-following strategies based on these signals can boost returns, making technical analysis especially useful in navigating trends in this sub-asset class.

Identifying Uptrends in Gold Mining ETFs

Finding a strong uptrend in gold and gold mining ETFs means keeping an eye on rising prices with higher highs and higher lows. This should be confirmed by strong volume and momentum indicators like RSI, MACD, and the average directional index (ADX).

A rising GDX/GLD ratio is a big plus. It shows that miners are leading the charge, which often signals bullish sentiment. Breakouts above resistance levels and intermarket cues, such as a declining U.S. dollar or declining real yields, can further validate the move.

With their leverage to gold, miners can deliver two to three times the returns in bull runs. Thus, utilizing a mix of technical signals can help confirm the trend and boost your confidence in specific trades.

Price Momentum and Confirmation

Gold and gold mining stocks are highly correlated—they tend to move together—and when both show higher highs and higher lows, it confirms the uptrend and that it is supported by institutional confidence.

Mining stocks often react strongly to changes in the price of gold, so if gold is rising and the gold mining ETFs follow suit, particularly with increasing volume and momentum, that would confirm the trend. A rising GDX/GLD ratio adds further conviction, while synchronized strength helps traders avoid false signals. Indeed, watching the price action is also suitable for setting stops or scaling into positions, especially when breakouts align across both markets.

Using Ratios for Confirmation

The GDX/GLD ratio helps to confirm trends. This ratio shows whether gold mining stocks are outperforming physical gold, a sign of growing risk appetite and bullish sentiment. If the ratio is increasing alongside gold, that’s a strong confirmation. Conversely, if it’s falling while gold climbs, that’s a red flag for weak momentum.

Traders often use this ratio with technical indicators like moving averages, RSI, or support and resistance levels to refine entries and exits. Nonetheless, the GDX/GLD ratio is not a stand-alone signal; it’s good for trend validation and spotting divergences that can hint at the next big move.

In addition, when junior gold miners outperform seniors, which can be observed with the GDXJ/GDX ratio, this often signals growing investor confidence and risk-on appetite.

Identifying Downtrends in Gold Mining ETFs

Downtrends can be identified on charts when price makes lower lows and lower highs, which is the inverse of an uptrend. Also, look for the price to move below popular moving averages like the 50- and 200-day. Volume on down days will often be up.

A falling GDX/GLD ratio, weak momentum, and limited buying interest on rallies will confirm these moves. Combined, this is a classic setup for a downtrend. Indeed, these moves often reflect broader risk-off sentiment, rising real yields, or a stronger dollar, all of which significantly impact the price of gold.

The Role of Junior Miners in Trend Analysis

Junior gold miners are high beta plays that react more sharply to gold price moves and shifts in sentiment, making them great indicators of the strength or weakness of the trend.

But if they lag during a gold rally, it could point to underlying skepticism. Traders watch this relationship closely, using it to confirm breakouts, spot early momentum, or catch signs of trend exhaustion. In bull market runs, juniors tend to surge after seniors, while in downturns, they often lead the way down, making them a valuable gauge of sentiment.

A Practical Example Using Technical Analysis

Here’s a typical setup for a swing trader focused on gold mining ETFs. The trader will usually monitor the GDX/GLD and GDXJ/GDX ratios on a longer-term time frame, either daily or weekly, to get a read on broader relative strength. If both ratios are trending higher, that’s a strong sign that miners are outperforming, and a green light to start looking for trades in GDX and GDXJ.

Once there is an understanding of the overall relative strength, the trader will then zoom in on the shorter-term time frames for the gold miner ETFs, using a moving average to gauge trend direction and indicators like the MACD and RSI to time entries. Volume spikes add further confirmation.

In this case, the GDX/GLD and GDXJ/GDX ratios are rising, and there is some bullish RSI divergence, positive moving average crossovers, and positive MACD crossovers, so the swing trader would most likely try to enter long positions in GDX and GDXJ.

Warning signs like bearish divergences, MACD crossovers to the downside, or a breakdown in relative strength ratios typically trigger exits. If the broader trend in those ratios remains bullish, the trader keeps running the playbook, waiting for the next signal to jump back in.

The Bottom Line

Gold mining ETFs give investors leveraged exposure to gold, reflecting not only the metal’s price but also equity factors, making them more volatile than the direct gold play. This is where technical analysis can help.

Tools like moving averages, RSI, MACD, and volume indicators help traders spot trends, confirm momentum, and manage risk in this relatively volatile space. Barometers include synchronized price action between gold and miners, GDX/GLD or GDXJ/GDX ratios, and classic uptrends or downtrends.

If you’re in your 20s, you may have just started your career with an entry-level salary and you may have a significant amount of debt if you attended college. You might not yet own a house or anything else of considerable financial value. The 20s are a time when many people have the tightest finances of their lives. It’s also typically when you start to build a financial foundation for the rest of your life.

Keen to know how your financial situation compares to other people your age? Forget income. For a more complete analysis, it’s better to look at net worth, the metric we use in this article.

Key Takeaways

• People in their 20s tend to have a lower net worth as they often earn smaller salaries, don’t own many valuable assets, and may owe lots of money.
• The average net worth for people in their 20s is $113,084, and the median is $7,638, according to a 2024 analysis by Empower.
• The best way to build net worth is to spend wisely, pay off debt, and start investing as soon as possible.

Average Net Worth of Americans in Their 20s

Empower, a financial services company, collected data from American users of its retirement-planning dashboard to determine average and median net worth in November 2024.

Age by decade	Average net worth	Median net worth
20s	$113,084	$7,638
30s	$317,171	$35,649
40s	$791,616	$125,370
50s	$1,406,887	$288,263
60s	$1,703,727	$439,154
70s	$1,626,996	$367,286
80s	$1,521,375	$342,552
90s	$1,292,056	$293,322

The average net worth for people in their 20s is $113,084, and the median net worth for that age group is $7,638, according to Empower’s analysis.

Net worth increases as people approach retirement age, then drops when they stop working. This shows how people accumulate more assets as they progress in their careers and then steadily spend this wealth when they retire.

There’s also a large difference between the average and median readings, reflecting how a few outliers (wealthier people) can skew the average. Consequently, the median figure is more representative of what is typical for this age group.

It’s worth noting that the groups surveyed in this type of report can be relatively small, and the Empower analysis looked specifically at people using its retirement-planning dashboard, a group that is likely to be more focused on saving money and planning for retirement. Therefore, the results might not be representative of the broader U.S. population. As a comparison, the U.S. Federal Reserve also releases net worth data. According to the Fed’s most recent Survey of Consumer Finances in 2022, family median and average net worth by age group were as follows:

Age	Median net worth	Average net worth
Less than 35	$39,000	$183,500
35-44	$135,600	$549,600
45-54	$247,200	$975,800
55-64	$364,500	$1,566,900
65-74	$409,900	$1,794,600
75+	$335,600	$1,624,100

The median net worth for families where the head of household is under 35 is $39,000, while the average net worth is $183,500. These figures are higher than Empower’s. That perhaps isn’t surprising because the Fed survey looks at family net worth, not individual net worth, and it includes people in their early 30s, who are likely to have accumulated more assets and earned higher salaries compared to people in their 20s.

How To Build Up Your Net Worth

Net worth can change throughout a person’s life, depending on what they own and owe, and it tends to increase with age.

People in their 20s who want to build their net worth should start by keeping tabs on spending habits, cutting out unnecessary expenses, and trying to save as much as possible each month. Excess funds can be used to pay down debt, especially high-interest credit card debt, and invest for long-term financial goals. Investing in a 401(k) and taking advantage of an employer match is a great place to start. The earlier you start investing, the more your money will be able to grow.

The Bottom Line

The median net worth for people in their 20s in the U.S. is $7,638, while the average is $113,084, according to an Empower analysis. The way people manage their finances during this phase of their lives plays a significant role in shaping their future financial stability. That’s why most financial experts recommend that people start investing as early as possible, allowing their portfolio to benefit from compounding returns and grow over time.

Reviewed by Lea D. Uradu
Fact checked by Yarilet Perez

All municipalities are different, but in general, any improvements that modify a home’s structure, roofing, electrical and plumbing systems, and heating and cooling systems require permits. Many jurisdictions have permit requirements for work that exceeds a certain amount of money.

There may be more permit requirements depending on where you live, but here are the basics of the permitting process and some significant projects that usually require a permit.

Key Takeaways

• Building permits are usually acquired through the appropriate city or county code enforcement office.
• Major changes that alter the footprint of your home require a permit.
• These changes might include decks, fencing, plumbing, electrical work, and siding projects.
• Failure to obtain permits—even if you hire a contractor—can stall your project or complicate the sale of your home.
• Renovations such as painting, flooring, countertops, and replacing faucets don’t require a permit.

The Permitting Process

Local municipalities issue permits based on city ordinances. Since there are no federal or state standards, building codes vary by city and county. The only way to know if you need a permit for a project is to contact the office.

If you hire a licensed contractor, they should know whether the job requires a permit, but as the homeowner, it’s your responsibility to ensure that all remodeling is completed lawfully. Don’t assume the permits were handled by the contractor.

Some municipalities charge a percentage of the total construction costs to issue the permit, and it may take several weeks to complete the required inspections. According to the National Association of Realtors (NAR), failing to obtain the proper permits may stop or stall the renovations you have planned, or complicate or cancel the sale of your home.

You must prove that you pulled the proper permits if you have a home inspection or appraisal done. If you put your house up for sale, there’s a very good chance that the lending bank won’t advance the loan if it learns that remodeling work was done without securing permits. There’s also the added hassle of paying fines or—even worse—having to tear down and redo the work.

Important

It is your responsibility as a homeowner to ensure all the proper permits are pulled for your project(s)—even if you hire a contractor to do the job.

Renovations That Likely Need a Permit

Building permits are often divided into categories, including those allotted for electrical, mechanical, and structural changes or new construction work. Before you apply for these, you should have plans drawn up that comply with local codes and ordinances. That’s because some renovations will alter the structure of your property, and regulators want to ensure that your property will be able to support the work you plan to do.

There’s a very good chance that you need a permit if you plan to make major changes to your home’s footprint. This includes things like more rooms, decking, garages, some sheds, and others, such as:

• Fences: Not all fences require a permit, but municipalities often place height restrictions on non-permitted fences. The city of Chicago, for example, requires a permit for a fence five feet or higher, while other cities allow for higher structures.
• New windows: Replacing an existing window doesn’t usually require a permit, but cutting a hole for a new window generally does. This includes skylights and new doors.
• Plumbing and electrical: A permit is probably required if you’re installing new or removing existing plumbing. Any job that includes installing a new electrical service to your home also requires a permit. Even something as simple as moving an outlet requires a permit.
• Siding: Most municipalities require a permit for siding projects.
• Water heater: You need a permit to replace your water heater. You may also need a permit for ventilation system changes.
• Total cost: Some municipalities require a permit if renovations or construction projects cost more than a certain amount—usually $5,000 or more.

Important

Every municipality has its own rules on what constructions require a permit. Always check with your local planning or building department before starting a renovation.

How Do I Get a Permit?

Permits are usually issued through your municipality’s permitting office. Depending on the project’s complexity, some permits are issued immediately, while others may require inspection of the plans.

During the renovation process, inspections will be required. Multiple inspections may be required for projects involving home additions. Once the work is complete, a final inspection occurs, and the project can conclude.

Renovations That Don’t Require a Permit

There are some things you can do to your home without going through the process of getting a permit. The majority of them are fairly minor—most of which you can do yourself without having to hire and pay for a contractor. Here are a few of the projects that may not require a permit:

• Painting or wallpapering
• Installing hardwood floors or carpeting
• Minor electrical repairs that don’t involve adding new or moving existing service
• Installing new countertops
• Replacing a faucet

Do I Need a Permit to Put Drywall in My Garage?

It depends on your local code. If you’re not changing the structure of your garage, you may not need a permit, but it’s best to check with your local building department beforehand.

Do I Need a Permit to Repair a Deck?

In many cases, permits are not needed for minor repairs on existing structures, but if the damage is bad enough, you might need one. Contact your local building department to learn if you need a permit.

What Can I Build Without a Permit?

It depends on your county and city laws, but in most cases, decks, large sheds, certain fencing, plumbing, electrical, and projects that meet specific costs require permits.

Considering renovations to personalize your home or boost property value? Check out our guide—Owning It: Investing In Your Home—to learn more about how to plan and pay for your project.

The Bottom Line

Most large projects that involve major changes to the structure of your home require a permit. Because each municipality has different rules, it’s essential to check your city’s website or call for clarification. Regardless of who does the work, the homeowner’s responsibility is to ensure that the project holds the proper permits.