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Gold/Mining/Energy : Gold & Gold Stock Analysis
GLD 399.01+0.1%Dec 19 4:00 PM EST

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To: Tommaso who wrote (25735)8/27/2011 1:51:49 PM
From: GST3 Recommendations  Read Replies (1) of 29622
 
Excellent post -- gold stocks are indeed cheap. In my view, gold is also cheap. Even if gold stays flat, gold stocks will do well. If, as I believe, gold will continue to appreciate relative to dollars at the same rate as the past few years, then gold stocks offer huge price appreciation from current levels. It is always less risky to own gold than gold stocks -- but at the moment the risk premium on stocks is absurdly high -- the best current relative value is in stocks. I know you hold NEM calls -- for others, this is the time to buy them or something similar if you want additional exposure to the upside of gold stocks.
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