2021 was a year to forget for investors in the precious metals space, with the Gold Miners Index (GDX) down more than 10%, giving up a large portion of its 2020 gains. Unfortunately, 2022 hasn't been much better, given that the GDX is in negative territory yet again, down 4% year-to-date. This has prolonged what's already been a violent 18-month bear market in the GDX, with many names down as much as 50%.
The good news among the carnage is that valuations in the space are now at their most attractive levels in years, and while the GDX is down year-to-date, it's slightly outperforming the S&P-500 (SPY). This outperformance is showing up at a critical point, with the GDX sitting at a critical support area vs. the S&P-500 and an area where it's seen a strong recovery in the past. In this update, we'll look at three names likely to outperform the GDX that look like attractive buys at current levels.
