It’s been a rough year thus far for investors in the Gold Miners Index (GDX (NYSE:)), with the ETF sliding more than 5% year-to-date, massively underperforming the S&P-500 (SPY) and Nasdaq-100 (QQQ) indexes. Q4 was a better quarter for precious metals investors. The bulls staged a 14% rally in the GDX thus far. This reverses nearly all of the losses that occurred during Q3, which saw the price drop below $1700/oz. 3 gold miners that stick out as high-quality business models at very reasonable valuations are Alamos Gold (NYSE:), Nomad Royalty (NSR), and Barrick Gold (NYSE:).It’s been a rough year thus far for investors in the Gold Miners Index (GDX), with the ETF sliding more than 5% year-to-date, massively underperforming the S&P-500 (SPY) and Nasdaq-100 (QQQ) indexes.

The bulls have been faring much better in Q4 than Q3, with a 14% rally so far in the GDX. This reverses nearly all of the losses that occurred during Q3, when gold prices fell below $1,700/oz.

While the miners are up more than 10% off their recent lows, it’s worth noting that the sector remains the cheapest that it’s been in several years, and this suggests that further weakness should present a low risk buying opportunity. In this update, we’ll look at three miners trading at deep discounts to fair value, and their ideal buy points for the best reward/risk proposition:

Continue reading on StockNews