Nevertheless, metals producers have some additional “moving parts” that need to be considered, such as debt levels, free cash flow, environmental concerns and regulations, mining safety issues, reserves and exploration prospects, quality of management and earnings history, Barone added in the MarketWatch report.

“Assuming you accept the thesis that precious metal prices are not going to collapse, then the competent mining companies are finally going to be rolling in dough showing very low cash flow multiples,” Brent Cook, geologist and author of investment letter Exploration Insights, said. “When you begin valuing these miners as profitable companies rather than a call on the gold price, many look quite cheap.”

Market Vectors Junior Gold Miners (NYSEArca: GDXJ) follows small-cap miners.

Market Vectors Gold Miners

For more information on the gold miners, visit our gold miners category.

Max Chen contributed to this article.