Gold can't catch a break, but the companies digging it out of the ground might. Spot gold has fallen more than 5% in 2026 after last year's strong rally, pressured by a recovering US dollar and shifting macro sentiment. Gold miners have fared even worse, creating a valuation gap that could offer investors an opportunity.

Leveraged to the upside: Gold mining stocks tend to amplify moves in the price of gold because many of their operating costs are relatively fixed. As gold prices rise, profit margins can expand much faster than the underlying metal. That dynamic works in reverse during downturns. That has left the VanEck Gold Miners ETFGDX

trading at just over 9x next year's earnings, well below its five-year average of 14x and the S&P 500's ~19x forward P/E.

• BCA Research notes miners are "largely independent of the AI story," offering equity portfolios quality exposure uncorrelated to the crowded tech trade.
• Additionally, Chris Mancini, portfolio manager of the Gabelli Gold Fund, said, "Buying the miners is a cheap way to get exposure to the price of gold."

Digging for Bargains

UBS identified six top picks in the sector, led by NewmontNEM

and AngloGold AshantiAU

, saying the recent correction has created a more attractive risk-reward despite near-term pressure from a stronger dollar and higher real yields. Mancini says miners are generating $2K+ per ounce in profit margins, producing substantial free cash flow, and returning much of it to shareholders through buybacks and dividends.

• Canaccord Genuity analyst Carey MacRury names Agnico EagleAEM
  as one of his top gold growth picks, targeting 20%–30% production growth by the mid-2030s.
• He also highlights Alamos GoldAGI
  , which aims to reach 1M ounces by 2030, and Aris MiningARIS
  , which could potentially grow production to 1M ounces within five to six years.

The compelling setup: Gold found support above $4K while technical analysts see the GDX with more than 40% upside to $110 by early 2027. MacRury says the long-term case remains intact, with central banks now holding nearly 30% of their reserves in gold, up from less than 10% a decade ago. He says miners also have stronger balance sheets, more disciplined spending, and are returning record cash to shareholders. The market may have chased the gold, but missed the gold mine.