VanEck Gold Miners ETF

GDX

Market cap $36.6B

Gold and gold mining ETFs remain a 'buy' as structural drivers—central bank buying, de-dollarization, and fiscal deficits—support sustained high gold prices. Miners like Agnico Eagle, Newmont, and Kinross are generating record free cash flow, strengthening balance sheets, and increasing shareholder returns. Despite a 65% gold rally in 2025, miners still trade at valuations assuming lower gold prices, presenting a valuation gap and further upside potential.

Rising gold and silver prices in 2025–2026 have driven a step-change in mining company profits and cash flow. Amplify Junior Silver Miners ETF returned 184.02% in 2025, far outpacing spot metals prices. Miners' net profit margins now rival tech giants, with cash flows accelerating—Newmont Mining's free cash flow rose 150% year-over-year.

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Both funds focus on metals miners, but SLVP emphasizes silver while GDX targets gold. SLVP is less expensive and yields more, but GDX is much larger and more liquid.

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.

SIL and GDX both target mining stocks but differ sharply in metal exposure, with SIL focused on silver and GDX on gold GDX charges a lower expense ratio and holds more companies, while SIL has outperformed on one-year total return as of Feb. 6, 2026 SIL experienced a steeper maximum drawdown over five years, suggesting higher historical risk than GDX These 10 Stocks Could Mint the Next Wave of Millionaires ›

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.

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