“I like the GDX here again, as I think it’s likely got some momentum coming toward it and gold, as equities lose some of their own momentum. Gold looks like it might finally get that pop near-term. I could see $1500/oz for gold by the end of the summer. Mining companies have been crushed over the last year or two, and I think they can easily get back to their 2010 highs in the next year or two,” adds Willard.
However, momentum as it pertains to miners ETFs is an important consideration. GDX has a three-year standard deviation of 30.2%, according to Market Vectors data. Underscoring an important difference between the two ETFs, GDXJ’s three-year standard deviation is almost 42%.
Market Vectors Gold Miners ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD.