Gold Miners as You’ve Never Seen Them Before

Everyone hates gold miners now. I don’t blame them.

After all, gold miners just hit a 52-week low. They have been down so long, they don’t know which way is up.

But there’s something about gold miners that is up. Something that should interest a select breed of investors.

I’m talking about dividends. Specifically, the forward dividend yield on the VanEck Vectors Gold Miners ETF (NYSE: GDX).

Here, I made this chart for you on my Bloomberg terminal …


Look at that. The GDX is falling in price. But that makes its indicated dividend yield — the dividend that will be paid over the next 12 months — seem larger in comparison. Now, it’s around 1%.

That’s not huge. But it’s one more indication that gold miners are a bargain.

I’ve made my case for why I think gold has bottomed. You can read those stories here:

  1. This is What a Gold Market Cliff Dive Looks Like.”
  2. Gold: What Would Patton Do?
  3. Get Ready to Catch Those Falling Golden Turkeys.”

This chart is one more piece of the puzzle. So, don’t be surprised when gold — and miners — blast off. It’s a matter of, not if. The countdown has started. And when that blast-off comes, you’ll wish you owned select miners like my favorite gold miner to own now.

All the best,

Sean

Leave a Reply

Your email address will not be published. Required fields are marked *