3 gold miners trade at cheap dirt valuations by StockNews

© Reuters. 3 gold miners trade at cheap valuations

It’s been a tough year so far for Gold Miners Index (GDX (NYSE :)) investors, with the ETF slipping over 5% since the start of the year, massively underperforming the S & P-500 (SPY) and the Nasdaq-100 (QQQ). However, the fourth quarter has been much better so far for precious metals bulls, with bulls having so far registered a 14% rally in GDX, reversing nearly all of the third quarter’s losses when the price of l gold fell below $ 1,700 / oz. Alamos Gold (NYSE :), Nomad Royalty (NSR) and Barrick Gold (NYSE 🙂 were three mining companies that stood out as high quality business models at very reasonable valuations. It has been a tough year so far for gold investors. Miners Index (GDX), with the ETF slipping more than 5% since the start of the year, massively underperforming the S & P-500 (SPY) and Nasdaq-100 (QQQ) indices.

However, the fourth quarter has been much better so far for precious metals bulls, with bulls posting a 14% rally so far in the GDX, reversing nearly all of the third quarter’s losses when the price of l gold fell below $ 1,700 / oz.

While miners are up more than 10% from their recent lows, it should be noted that the sector has remained the cheapest for several years, suggesting that further weakness should present a buying opportunity at low risk. In this update, we’ll take a look at three miners who trade at large discounts to fair value, and their ideal buy points for the best reward / risk proposition:

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Lee J. Murillo