Gold Miners Retain Their Strong Fundamental Cases
Gold fundamentals remains sturdy, and the same can be said for gold mining assets like the
Sprott Gold Miners ETF (NYSEArca: SGDM). Recent struggles for the asset class could be an opportunity for investors to capitalize on stout fundamentals.
SGDM tracks the Solactive Gold Miners Custom Factors Index and “emphasizes gold companies with the highest revenue growth and free cash flow yield, and the lowest long-term debt to equity ratio,” according to the issuer.
Some good news for investors considering SGDM is the fact that mining stocks are attractively valued.
“Gold stocks remain undervalued, relative to both their underlying profits and prevailing gold prices. Despite gold’s recent correction, the gold miners are still earning money hand over fist,” reports Seeking Alpha.