It’s not often the market hands you a golden opportunity. But that’s what you’ve got now. Will you take it? I’m talking about gold itself. But I expect gold miners, as tracked by the VanEck Gold Miners ETF (GDX), to make an even bigger move, says Sean Brodrick, editor at Weiss Ratings Daily.
First, the setup. The White House recently announced 39% tariffs on imports of gold bars. The tariffs sparked a migration of gold from Europe to the US, seeking to beat the tariffs. That sent prices — which were already marching higher — soaring to a new high.
(Editor’s Note: Sean will speak at the 2025 MoneyShow/TradersEXPO Orlando, scheduled for Oct. 16-18, 2025. Click HERE to register.)
That is, until the White House changed its mind. And gold tanked back down to support. It won’t stay there long.
For starters, funds need to Buy-Buy-Buy! Gold is enjoying strong performance and bullish market drivers. Yet, most fund managers remain amazingly under-allocated to it.
The August 2025 Bank of America survey found average portfolio exposure to gold is about 2.2%. And a whopping 41% of fund managers have ZERO exposure to gold. This is even though 13% of fund managers said the yellow metal would outperform over the next five years.
Second, even though gold prices broke out to new highs in 2024 — and kept going higher — gold miners have cut back on looking for gold. Gold exploration budgets declined 7% in 2024 to $5.4 billion, despite record-high gold prices. That’s down from $7 billion as recently as 2022…and $10 billion in 2012.
What happens when you have high demand for something…and at the same time, you have dwindling supply? That is resolved by higher prices. In gold’s case, much higher prices.
I listen to cycles, and there’s a very predictable pattern of gold rallies and consolidations over the past few years. We get three to five months of consolidation, followed by a breakout. Here’s a chart of that …
If the past is any guide at all, we’re near the end of the recent consolidation. That means a breakout is coming. And it could be BIG! My intermediate-term target for gold is $4,100 an ounce. In the longer term, I continue to target prices above $6,000 an ounce during this bull run.
GDX should do well because miners are leveraged to the underlying metal. As gold goes higher, and their mining costs remain relatively flat, their profit margins widen like the Grand Canyon. Man, is this going to be a great ride. I hope you’re onboard for what could be a generational wealth-building event.
Recommended Action: Buy GDX.
