Why Gold Is Soaring But Gold Stocks Aren't

Actually, gold stocks have been outperforming the stock market as a whole. Some gold stocks, like Osisko are overvalued and in a speculative bubble. Others haven't performed at all. For the most part, however the entire market by comparison, when adjusted for inflation, is in a bear market since year 2000. Gold stocks, when divided exclusively by the price of gold, have under performed since as long ago as 1997. Gold stocks have seen their nominal highs in 1997.

So how do you provide a return for shareholders when the equity gains may not be a given as a gold miner due to stock market turmoil? Simple. You pay dividends. This is what GBN.V should have as a goal.

This would require a robust gold price as well as astringent grade controls in the geological context of the La Ronge gold belt.

http://www.thestar.com/article/916069--roseman-why-gold-is-soaring-but-gold-stocks-aren-t

The Outlook For The Gold Price By Comparing Bull Markets

http://www.321gold.com/editorials/hoye/hoye010611.pdf

Extrapolating Q

The Q-Ratio gives you an idea of how overvalued the stockmarket is.

http://dshort.com/articles/Q-Ratio-and-market-valuation.html

dshort had speculated that the Dow could have a correction on Dec 31, as it represents a previous high set in 1999:

http://dshort.com/articles/Kimble/101229-Dow-Shades-of-Y2K.html

Dax In Gold

The highs and lows in the Dax In Gold Chart compares directly with the Q-ratio. This means that a higher gold price is in store, and will probably peak once the Q-ratio bottoms:

http://www.realterm.de/DAXinGold.php

-F6