“What would it take for the miners to reverse higher? History says a sustained move higher in gold. But the down trend in gold is no where near run its course. Even the most optimistic goldbug can only make a case that the fall has stopped, not a for a reversal. So why is it that you want to buy the gold miners?,” wrote Harmon.
To be fair, GDX is higher by nearly 2% Monday after Goldcorp (NYSE: GG) announced it will acquire Osisko Mining for $2.4 billion. Goldcorp is GDX’s second-largest holding with a weight of 12.9%.
Market Vectors Gold Miners ETF
Tom Lydon’s clients own shares of GLD.