The GDX, which is an ETF comprised of precious metals mining shares appears to be topping with a head and shoulders pattern when compared to the DOW. Basically when this ratio reduces the GDX becomes more valuable when compared to the DOW Jones Industrial average and broader stock market. This ratio appears to be trapped in the undervalued zone (for the GDX) and has been there for the last 8 years.
We are still in a time with good buying opportunities for gold and silver miners, as the GDX is cheap when compared to the broader stock market.
Sooner or later this ratio will break down lower. When it does what would you rather own? General stocks or gold mining stocks?