SEE MORE: 31 Gold ETFs Investors Should Size Up
Gold miners currently trade at about a 59% discount to gold prices since 2009, have a price-to-book value of 1.0x and an average dividend yield of 2.8%, which makes the sector look attractive from a valuation standpoint.
Active traders can play a potential rebound in gold miners with leveraged ETFs such as the Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT) and the Direxion Daily Junior Gold Miners Index Bull 3X Shares (NYSEArca: JNUG).
“Knowledgeable investors know they must shun the senior mining companies, for several reasons. At the top of the list is that it is impossible to make money holding these entities. They are among the biggest serial under-performers in the entire realm of equities,” notes ETF Daily News.
For more information on the gold bullion market, visit our gold category.
VanEck Vectors Gold Miners ETF (NYSEArca: GDXJ)