Related: Gold Investing for ETF Leprechauns
GDX is comprised of global gold miners, with a notable tilt toward Canadian and U.S. mining companies. Stock fundamentals like cost deflation across the mining industry, share valuations below long-term average and rising M&A are all supportive of the miners space as well, but those fundamentals could be glossed over if the dollar strengthens.
“Investors have recently piled into one popular gold miners exchange-traded fund, the GDX. These flows increased the fund’s assets by its highest level since late 2017,” according to CNBC. “Gold miners are cheap relative to spot gold, and may be one way to gain exposure to gold.”
Tom Lydon’s clients own shares of GLD.