Gold mining stocks, which have underperformed for years, could start to shine now that the yellow metal is at all-time highs, chart analysts noted. The VanEck Gold Miners ETF (GDX) has done exceedingly well in 2025, surging 48% year to date, and up more than 9% this month alone, as the commodity surges to all-time highs on safe haven demand. On Tuesday, gold futures hit a fresh all-time high of $3,509.90. Now, some technical analysts have shifted their preference to gold miners over the physical commodity, saying there’s further upward momentum for the group. “It’s really been a — from, let’s say 2006 to 2020 — a significant degree of underperformance by the gold miners. And what we’re flagging here is that over the last 10 years, the ratio between the two has started to turn sideways, and create the space,” said Ari Wald, head of technical analysis at Oppenheimer. “And now as it starts to inflect higher from the space, we think that pertains to additional outperformance by the gold miners versus the commodity looking ahead.” To be sure, the technical analyst expects both gold miners and the physical commodity to be overbought over the near term given each are trading more than 20% above their 200-day moving averages, he said. However, he expects any dips in gold mining stocks will be bought as the trend is to the upside “over the coming quarters, perhaps even the coming years.” Wald expects the GDX could easily top its 2011 peak at 64, which is about 27% above where the ETF ended trading on Tuesday, at 50.23. GDX YTD mountain GDX JC O’Hara, chief market technician at Roth MKM, made a similar observation over the weekend. The chart analyst, who called gold miners his No.1 ranked industry group, said the stocks are finally catching up to the commodity. “We find it interesting that while Gold Miners have outperformed Gold, the Gold Miners charts have been lagging in terms of pattern maturity. Last week GDX was finally able to put in a sustained breakout from a multi-year base pattern,” O’Hara wrote Sunday. “GLD broke out in mid-2024. We believe pattern wise, GDX can still play catch-up.” ‘Way too cheap’ Investors consider gold-backed ETFs such as the SPDR Gold Trust (GLD) and the iShares Gold Trust (IAU) a straightforward way to add exposure to the safe haven asset, without paying for storage or insurance that would come with owning the physical commodity. However, gold mining companies, which come with additional operational risks, nevertheless have other draws for investors. For one, they are cheap when compared to historical valuations. As an example, GDX is trading at a 13.9 times forward P/E. The S & P 500 materials sector is currently trading at a 19.1 times forward P/E. Newmont , the biggest gold mining company in the world, is trading at 13.3 times forward P/E, far lower than the 20.7 times it averaged over the past decade. “If the price of gold stays at these levels, the stocks are really way too cheap,” said Chris Mancini, an associate portfolio manager at the Gabelli Gold Fund (GOLDX) . “Everything is contingent on the price of gold staying where it is or going higher.” GOLDX, which has $490.8 million in assets under management, has a more than 52% total return year to date, according to Morningstar. It has a 1.550% adjusted expense ratio. Gold miners also typically pay dividends, a characteristic sought after during times of greater market volatility. Newmont, for example, offers a 1.8% dividend yield. Mancini said he has high conviction in Northern Star Resources , an Australia-listed gold miner that offers a dividend, is buying back shares and expanding a mine in Western Australia. “I think that that’s what the market will eventually wake up to,” Mancini said. “The market will eventually wake up to the fact that they’re getting income from owning the gold stock that they’re not getting from owning the physical metal.” Chart analysts have their own preferences for gold miners. Oppenheimer’s Wald said that he prefers stocks that have cleared their 2011 peak, including Agnico Eagle Mines and Franco-Nevada that are up about 55% and 47% this year, respectively. He also favors Royal Gold and Wheaton Precious Metals , which have rallied around 37% and 48%. “We see such action as an indication of structural strength meaning we’d be more inclined to defend these stocks on weakness,” Wald wrote. Roth MKM’s O’Hara included B2Gold and Coeur Mining among his favorite plays. 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