I've read a number of gold bloggers who provide explanations for the low gold stock valuations such as hedge fund shorting, naked shorts and others without any convincing evidence. I like to read the counter arguments but they can be difficult to find. While reading an article on the recent acquisition of Northgate by AuRico( is the Rico who posts here any relation?) I found some insights that provide an alternative( non conspiratory) explanation:

http://www.bloomberg.com/news/2011-08-30/northgate-takeover-at-cheapest-value-since-04-with-record-gold-real-m-a.html

The comments by the mainstream managers and analysts suggest they believe the gold price has peaked, may be in a bubble and will drop in average value next year. I see evidence right now where the mainstream investment community is not convinced yet that the high gold price is sustainable, so therefore gold stocks are not of sufficient interest for significant money flows. My personal opinion is that gold will continue to trend higher because of the weak currencies( USD, Euro) and SE Asia physical gold purchases. If that trend continues, then I'm hoping the gold stocks will follow.