This is a comparison I made based on my GLD forecast for the next 12 months. I expect GLD to rise by 5 to 10% before year end. I calculated a few ratios and it appears that GDX moves exponentially with gold price (not a discovery I know). Basically, I wasn’t unable to use a distinct ratio, so I just compared their corresponding prices at the corresponding time.
I concluded that if GLD was raising by approx. 5-10% to my price target of 128 to 134.5, GDX would rise from 26.5 to 28. This is an upside potential of approximately 29 to 37% on the current price!
I am long.