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September 8, 2018 | Gold Miners as You’ve Never Seen Them Before

Sean Brodrick

Sean is the natural resource analyst for Weiss Group. You can read his thoughts on gold, oil, cannabis, uranium and other natural resources at EdelsonInstitute.com

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

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September 8th, 2018

Posted In: The Edelson Institute

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