From the desk of Steve Strazza @Sstrazza and Ian Culley @IanCulley
We think it’s time to buy Gold Miners again, specifically the VanEck Vectors Gold Miners ETF $GDX.
The yellow metal has not been a great place to deploy capital over the last 6 months as the environment has significantly favored stocks over rocks... and risk-assets over defensive ones in general.
Owning Gold or Gold Miners has been nothing more but opportunity cost. However, there is mounting evidence that suggests now might be the time to jump back into this trade.
First, Commodities have really been working as an asset class. We’ve been pointing this out for months now, from Industrial Metals and Ags to even petroleum-based commodities.
Although through the early innings of this Commodities resurgence, Gold and Gold Miners have taken a back seat as prices peaked all the way back in the summer of last year and have been trending lower since.
We think that could be changing as we’re seeing signs of something brewing underneath the surface in Precious Metals. Let’s dive in.