Adam Hamilton - Zeal Newsletter

"The bottom line is gold stocks are now very cheap. Relative to gold, they are at their lowest levels of this entire secular bull except for during the stock panic. And immediately after that once-in-a-century anomaly, gold stocks soared dramatically far outpacing gold's gains. Gold stocks are so darned cheap today that even elite mainstream money managers are taking notice. Their buying alone could ignite a mighty upleg.

Like all stocks, the price levels of gold stocks are ultimately driven by their underlying profitability. And with gold so strong, gold miners' profits are huge. So inevitably sooner or later, investors and speculators will flood in to bid them back up to levels reflecting today's much-higher prevailing gold prices. The resulting gains in gold stocks should be massive, richly rewarding the contrarians who own them."

source: http://www.safehaven.com/article/23025/cheap-gold-stocks