GDX Stock Recent News

Charlie Munger advocated for having concentrated portfolios. I share what the requirements would be for me to have a highly concentrated portfolio. One of my picks will likely surprise you.

Dividend stocks boomed from early July 2024 to late November 2024. However, since then, they have pulled back sharply. I discuss the bad news that may continue weighing on many dividend stocks.

Economic uncertainty under President-elect Trump is driving the potential for heightened demand for gold and related mining enterprises, with the VanEck Gold Miners ETF a likely beneficiary. Historical patterns and current market conditions, particularly the end of the Treasury yield-curve inversion in December, suggest a strong outlook for gold in 2025. Gold mining valuations are exceptionally low today, presenting a significant buying opportunity, with examples like Newmont trading far below traditional norms (the largest GDX holding).

GDX has crashed in recent months. I believe this presents a great buying opportunity for long-term investors. I also detail why.

The rally in gold and gold miners, particularly the VanEck Gold Miners ETF, looks exhausted and may be due for a breather. The GDX ETF is highly concentrated, with Newmont Corporation making up 15% and the top five stocks comprising 44% of the fund. Momentum indicators for GDX and gold suggest potential intermediate tops, with RSI and PPO showing signs of weakening.

Since 2020, I've maintained a generally bullish stance on gold and silver, which I view as key hedges against growing systemic monetary system risks. These risks have escalated this year due to the recent devaluation of the Chinese Yuan and China's extreme economic measures, which have encouraged its population to buy gold and avoid real estate. Gold may be in a bubble today due to excess demand from China. However, its price is reasonable if the Federal Reserve makes a significant recessionary dovish pivot.

Gold ETFs are leading in flows across commodity funds as investors prepare for the shifting economic regime. The precious metal's prices reached an all-time high on Thursday following the Federal Reserve having cut interest rates by a half percentage point.

Gold is back in the spotlight, and eyes are on the Fed. As the U.S. Federal Reserve prepares for what could be an aggressive rate cut, gold ETFs, especially the gold-bullion tracking ETFs such as the SPDR Gold Trust GLD and the iShares Gold Trust IAU, are riding the wave.

The VanEck Gold Miners ETF is up 24% YTD, driven by rising gold prices due to geopolitical tensions, central bank buying, and falling interest rates. Central banks' increased gold purchases, geopolitical instability, and potential interest rate cuts create a favorable environment for sustained gold price increases. Investing in GDX offers exposure to gold miners, which can amplify profits as gold prices rise, providing diversification and reduced risk.

We've been trying both defensive and growth areas in this market. Here's how we handled a trade in gold miners.