It’s been a rough year thus far for investors in the Gold Miners Index (GDX (NYSE:GDX)), with the ETF sliding more than 5% year-to-date, massively underperforming the S&P-500 (SPY) and Nasdaq-100 (QQQ) indexes. However, Q4 has been much better thus far for precious metals bulls, with the bulls staging a 14% rally thus far in the GDX, reversing nearly all the losses from Q3 when the gold price slid below $1,700/oz. 3 gold miners that stick out as high-quality business models at very reasonable valuations are Alamos Gold (NYSE:AGI), Nomad Royalty (NSR), and Barrick Gold (NYSE:GOLD).It’s been a rough year thus far for investors in the Gold Miners Index (GDX), with the ETF sliding more than 5% year-to-date, massively underperforming the S&P-500 (SPY) and Nasdaq-100 (QQQ) indexes.
However, Q4 has been much better thus far for precious metals bulls, with the bulls staging a 14% rally thus far in the GDX, reversing nearly all the losses from Q3 when the gold price slid below $1,700/oz.
While the miners are up more than 10% off their recent lows, it’s worth noting that the sector remains the cheapest that it’s been in several years, and this suggests that further weakness should present a low risk buying opportunity. In this update, we’ll look at three miners trading at deep discounts to fair value, and their ideal buy points for the best reward/risk proposition: