A Comprehensive Bullish Case For Gold Mining Stocks
Discover why gold mining stocks are one of the most compelling investment opportunities of the next decade thanks to extreme undervaluation, widespread investor neglect, and surging profitability.
Regular readers of this newsletter know that I’ve been extremely bullish on gold, and also on gold mining stocks. I frequently highlight gold mining stock ETFs in my updates, including back in April when I pointed out that they had broken out of a major long-term chart pattern and were beginning a significant bull market. While they’ve moved sideways in recent months alongside gold’s consolidation, they are now heating up again. That’s why I’ve written this in-depth report outlining the compelling bullish case for gold mining stocks, including the fact that they remain quite undervalued and have substantial upside potential ahead.
Before diving into the gold mining sector, I want to begin by revisiting my long-term bullish thesis for gold itself, which I outlined in a detailed must-read report a few months ago. In summary, I believe gold is on track to reach at least $15,000 per ounce within the next five to ten years. This outlook is based on a powerful combination of bullish technical factors, ongoing fiat currency debasement, persistent inflation, unsustainable global debt levels, and dangerous bubbles in assets such as U.S. housing and equities.
Given these conditions, I believe gold’s 71% surge over the past 17 months is merely the beginning of a much larger and longer-lasting bull market. For those looking to accumulate gold, it is far from too late. This long-term bullish thesis also strongly supports a major upside case for gold mining stocks.
In the shorter term, I see a potentially very bullish setup developing in gold, which I detailed just a few days ago. A triangle pattern has formed over the past few months as gold has consolidated and taken a healthy breather. My view is that if gold decisively breaks out of this pattern, it should quickly surge to approximately $4,400 per ounce. Such a move would create a powerful tailwind for gold mining stocks as well.
Next, I want to highlight the VanEck Gold Miners ETF, which trades under the symbol GDX. It is the most widely followed gold mining stock ETF and serves as a key proxy for large-cap gold miners such as Newmont Corporation (NEM), Agnico Eagle Mines Limited (AEM), Wheaton Precious Metals (WPM), and Barrick Gold Corporation (ABX).
The daily chart of GDX below shows that it formed an ascending triangle over the past few months and has broken out of it in the last two trading sessions. This breakout is a highly bullish signal, especially when viewed in the context of the longer-term technical setup, which I’ll highlight in the next chart.
The chart below shows the monthly chart of GDX, which reveals a long-term triangle pattern that had been forming since 2011. GDX first broke out of this pattern in July 2024, signaling the official start of the mining stock bull market. It later cleared a major horizontal resistance zone between $42 and $46 in April of this year. I view this second breakout as even more significant than the first, as it provides additional confirmation and horizontal resistance levels generally carry more technical weight than diagonal ones.
The bullish price action seen over the past two trading sessions adds further confirmation that the gold mining stock bull market is gaining momentum. This recent strength reinforces the long-term trend and indicates that there is likely much more upside ahead.
Now let’s turn to the daily chart of the VanEck Junior Gold Miners ETF, which trades under the symbol GDXJ and is the most widely used proxy for junior gold mining stocks. While the large-cap GDX has already broken out, GDXJ has yet to do so and is currently lagging behind. However, that is likely to change soon.
A bullish ascending triangle is forming in GDXJ, and a breakout above the key $72 resistance level—likely coinciding with a breakout in gold itself—would signal that the bull market in gold mining stocks is gaining strength and becoming more broad-based.
The monthly chart of GDXJ shows that, like GDX, it broke out of a long-term triangle pattern in March 2024—a formation that had been developing since 2011. This move was followed by a breakout above the key $50 to $60 resistance zone in April 2025, providing strong confirmation that the junior gold mining stock bull market is now fully underway. A breakout from the ascending triangle on the daily chart would offer even further validation.