GDX: Free Cash Flow Revival Offers Hope
- Despite a strong rise over the past year, the VanEck Gold Miners ETF (GDX) has failed to outperform gold prices, contrasting with its historical trends.
- This underwhelming performance reflects structural issues that are likely to continue over the long term.
- Gold itself appears overvalued amid high real bond yields and a strong dollar.
- At current gold prices, GDX's free cash flow yield is likely to rise to a respectable 4%, suggesting a short position is no longer valid.
shells1
The VanEck Gold Miners ETF (NYSEARCA:GDX) has been disappointing gold bulls for years. Despite rising 37% since my previous bearish article in February, the ETF is no higher than it was in early 2022 despite gold being
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