Here is a snapshot of the fundamentals for the Van Eck Gold Miners ETF GDX which indicates the historical earnings growth of 33.40%.
Here is a 1 year daily chart of the GDX which has a return of -8.19%
In general, the Gold and Silver miners are undervalued and not recognized as a 'good' investment by Wall Street at this time. Investments go from undervalued to fair valued to overvalued. The GDX and the miners in general are undervalued at this time and a rally with the shares may be realized sometime this year. Trailing price/earnings are 16.85 for the GDX which should continue to drop with solid earnings.
The million dollar question is when will the shares start a breakout run? It's anyone's guess... If the analysts on Wall Street believe that Gold is in a bubble, why would they invest in a Gold miner? Especially if they think it's going to crash?
Gold may need to get back above the $1800 level before interest returns to the mining shares. I'm looking for a rally some time before May in the shares. We shall see...
Here is a 1 year daily chart of the GDX which has a return of -8.19%
In general, the Gold and Silver miners are undervalued and not recognized as a 'good' investment by Wall Street at this time. Investments go from undervalued to fair valued to overvalued. The GDX and the miners in general are undervalued at this time and a rally with the shares may be realized sometime this year. Trailing price/earnings are 16.85 for the GDX which should continue to drop with solid earnings.
The million dollar question is when will the shares start a breakout run? It's anyone's guess... If the analysts on Wall Street believe that Gold is in a bubble, why would they invest in a Gold miner? Especially if they think it's going to crash?
Gold may need to get back above the $1800 level before interest returns to the mining shares. I'm looking for a rally some time before May in the shares. We shall see...
