Should I Buy VanEck Gold Miners ETF (GDX)? Finance YouTuber Analysis

The YouTuber prefers the GDX ETF over direct gold exposure (GLD) because it offers significantly higher price appreciation (180% vs 78% for gold) and includes a dividend. Gold miners are seen as profitable companies that will share cash flow with investors, making them a strong safety play.

“That's why I've always kind of preferred the VANC gold miners ETF that GDX. Okay, this is a fund that holds gold miners in the United States and globally. It has it doesn't have much of a yield because the price has gone up so much. That yield just hasn't kept up.”

The YouTuber recommends GDX, stating that gold is set to be a major winner from a declining dollar and as an inflation hedge. He notes that central banks and foreign investors are already moving into gold, and he previously recommended GDX in December, which has seen significant returns.

“Now, I started recommending shares of gold miners and the VANC gold miners ETF, the ticker GDX in December, now up 34% from the late last year.”

The YouTuber suggests the GDX ETF, which tracks gold miners, due to the recent surge in gold prices to all-time highs. This increase, starting in early July, likely means current earnings estimates for miners are underestimated. With gold trading significantly above the average all-in sustaining costs for miners, these companies are highly cash flow positive, indicating potential for strong earnings surprises and further upside for the ETF.

“at $2,500 an ounce these miners are already hugely cash flow positive and I don't think estimates have factored in that recent bump in prices”

The YouTuber recommends GDX due to gold reaching all-time highs and the leveraged model of miners to gold prices. He notes that miners benefit from a 1.5% dividend and have low all-in sustaining costs, making them profitable even if gold prices fall slightly. Gold also benefits from central bank buying and dollar weakness.

“I've been recommending gold miners or the Vanek gold miners ETF F ticker GDX since last October as the price of gold reaches all-time highs.”

The analyst recommends GDX as an easy industry-wide investment in gold miners. He notes the ETF is up 14% since he started recommending miners, citing strong cash flows due to low all-in sustaining costs ($1,239/ounce average) and central banks replacing dollars with gold, further boosted by falling interest rates.

“I like GDX for an easy industrywide investment and miners like agnico Eagle mines took her AEM for its lower $1,125 per ounce aisc”

The YouTuber notes that gold miners have underperformed despite gold prices being near all-time highs. He highlights that while all-in sustaining costs have risen due to inflation, many miners still maintain healthy profit margins. He suggests that expectations for miners are good over the next year and fundamentals have improved.

“gold miners have done nothing for years despite the price of gold hovering right around its all-time high since November the vanet gold miners ETF that ticker GDX is no higher than it was four years ago.”

The analyst recommends buying the VanEck Gold Miners ETF (GDX) as a way to invest in the anticipated gold super cycle driven by China's strategic gold accumulation. He prefers miners and miner ETFs over physical gold because they offer a dividend yield while waiting for gold prices to rise, unlike physical gold which yields nothing.

“This is a Barrett gold ticker Geo LD you've also got the broader the broader miners like the van Eck gold miners ETF that sticker GDX any of these are going to pay you that dividend yield while you wait while you wait on those gold prices to spike higher unlike the physical gold itself which is going to pay nothing.”