by Stefan Gleason
Gold and silver mining stocks have embarked on a rally this year that could prove to be one for the record books. The leading exchange traded fund for the sector, VanEck Vectors Gold Miners (NYSE:GDX), shows an incredible 125% year-to-date gain. That far out-surpasses the 27% and 44% advances of gold and silver spot prices, respectively.
What does the mining stock run-up suggest about the fundamentals for the actual mined product, physical gold and silver?
Overall, it suggests that investors and industry insiders are optimistic about the prospects for higher metals prices. The mining shares tend to lead the metals in major moves up or down.