Sam the Snowman sings about “silver and gold” every winter in the 1964 animated film “Rudolph the Red-Nosed Reindeer,” but for metals investors in 2024, there’s reason to celebrate long before the holidays. With gold and silver futures up 43% and 40% year-over-year, gold and silver miners are having their best year in recent memory.

• The VanEck Gold Miners ETF ($GDX) is up 32% this year, with mining companies benefiting from record gold prices, a weaker dollar, and stronger profits in the sector.
• Similarly, the Global X Silver Miners ETF ($SIL) is up 30% YTD as mining operations thrive on record demand, with 2024 expected to be the fourth consecutive year of supply shortfalls for these metals.

What’s so shiny? Analysts are bullish on gold and silver, making miners an appealing option for gaining exposure to metals without needing to buy physically-backed ETFs or navigate complicated futures. These funds also offer a potential alternative to index funds like the S&P 500. TheGDX

andSIL

ETFs have price-to-earnings (P/E) ratios of 27x and 33x over the last 12 months, compared to the S&P 500’s 29x. This might attract commodity-curious investors, especially given the high hopes for metals. However, buyer beware — these specialized funds come with expense ratios of 0.5% and 0.65%, which can be steep, regardless of their promising returns.