GDX: Sell The Gold Miners

(8min)

Summary

  • Gold and gold miners have surged due to inflation concerns, but I believe GDX is overdone and recommend exiting positions in gold miners.
  • GDX has outpaced GLD and stocks in 2025, but trades at a significant premium, posing downside risk if gold prices fall.
  • Treasury Inflation-Protected Securities (TIPS) like PIMCO 15+ Year U.S. TIPS ETF offer a safer inflation hedge compared to gold miners.
  • GDX could decline by 18% to its 150-day moving average, with potential for further losses if the bear market pressures gold prices.
  • I do much more than just articles at 420 Investor: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Gold Bars Sitting on Blue Bar Graph, Stock Market and Finance Concept.

hallojulie

Gold, as measured by SPDR Gold Shares (GLD) has soared this year. Gold miners have done even better, riding the surge in gold. Looking at the last three years, GLD has increased more than VanEck Gold Miners ETF (

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Alan Brochstein, CFA, is one of the first investment professionals to focus exclusively on the cannabis industry. Alan got his start as a financial professional in the securities industry in 1986, managing investments in institutional environments until he founded AB Analytical Services in 2007 in order to provide independent consulting to registered investment advisors. He is also the managing partner of New Cannabis Ventures, a leading provider of relevant financial information in the cannabis industry since 2015.

Alan has run the investing group 420 Investor, for investors interested in the publicly-traded cannabis stocks that he moved to Seeking Alpha in 2023, since 2013. As the leader of the investing group 420 Investor, Alan closely covers 23 stocks and shares investment news as it comes out, previews of their earnings reports and analysis of them afterwards. Other features of the group include: 2 model portfolios, 10 videos per week with chart analysis, 3 summary pieces weekly, a monthly newsletter, and chat for questions Learn More. He also offers a sub-service of 420 Investor, The Big Picture, which will help you stay on top of the cannabis sector!

Analyst’s Disclosure: I/we have a beneficial long position in the shares of LTPZ, GDXD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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