By Daniel Putnam
InvestorPlace
After enduring a brutal stretch of underperformance through most of 2012 and 2013, gold stocks have finally begun to reward investors. The Market Vectors Gold Miners ETF (GDX) has surged 35.5% from its mid-December low, while the smaller Market Vectors Junior Gold Miners ETF (GDXJ) has rocketed 55.4%. The Direxion Daily Gold Miners Bull 3x Shares (NUGT), for its part, has risen 131% off of its low.
This incredible run seems to have finally validated the views of those who have long held that the sector is unloved, inexpensive and due to close the performance gap with physical gold. But with gains like this already in the rear-view mirror, is it still possible to make money in gold stocks?
Even after a rally of this magnitude, there are still plenty of signs that the gains can continue. Three, in particular, stand out: