Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada.
To say that the gold rally has captured significant investor interest over the past few months would likely be no understatement. After all, the precious metal, much like its silver compatriot, is currently seeing its value pushed higher due to ongoing geopolitical worries.
Gold has always been one of the go-to assets when stomach-churning volatility forces queasy investors into safe havens. However, recent volatility has been challenging that safe haven narrative, and one of the drivers has been speculative trading activity in China ETFs.
Gold is glittering, and it is time to make the most of it. While last year was a strong year for the precious metal, and has started 2026 even stronger.
VanEck Gold Miners ETF has soared to all-time highs, but I remain bearish given technical and valuation concerns. GDX is highly concentrated, trades at 3.8x book, and the top ten holdings comprise 57.2% of assets, raising risk if gold prices reverse. Despite strong momentum, GDX appears technically overextended, with potential downside of 18–33% based on retracement and valuation scenarios.
VanEck Gold Miners ETF (GDX) appears to have experienced a blowoff top, resembling the 2011, 1980, and 1974 peaks in precious metals. I believe the recent parabolic move in GDX, with a 300% gain since early 2024, signals the party is ending for gold/silver miners. Current price action and investor euphoria suggest a multi-year or even decade-long top is being outlined in 2026, making it prudent to sell on strength and/or avoid GDX for now.
The VanEck Gold Miners ETF benefits from structurally elevated gold prices and disciplined capital allocation among major constituents. GDX's recent outperformance is driven by margin tailwinds - higher gold prices and cooling costs - not valuation expansion, with FCF yields now testing overvaluation territory. Despite supportive earnings, GDX remains highly sensitive to gold price movements; even minor gold pullbacks can pressure the ETF.
GDXY is an actively managed ETF built around a synthetic covered call strategy on GDX. The weekly distribution depends on implied volatility, and the price follows GDX with a cap on the upside. Kurtosis is increasing, and skew is elevated: positive elements for the strategy's premiums.
VanEck Gold Miners ETF (GDX) is upgraded from hold to buy, supported by strong technicals and robust 2025 performance. GDX's valuation is compelling, with a 13.1x P/E and a 41% long-term EPS growth forecast, yielding an attractive PEG ratio. Dividend discipline is evident, as GDX paid its highest dividend since 2007, reflecting improved capital allocation among gold miners.
Gold's rally shows no signs of fading. With rate cuts looming, dollar weakening and bullish forecasts in sight, here are the ETFs that investors can use to ride the trend.
The VanEck Gold Miners ETF is a diversified bet on gold miners. The YieldMax Gold Miners Option Income Strategy ETF adds a layer of very attractive weekly cash distributions on top of diversified gold miner exposure. I share why GDX is a superior ETF to GDXY.