Sorry, that should have been catalyst.

So what will it take for the equities to finally have their day?

"Everything these companies prayed for a decade ago, they got. Collapsing global currencies. A gold pricing rising from US$250 an ounce to more than US$1,500. Incredible earnings and cash flow growth. It played out exactly as the gold bugs said it would, and then some.

Yet you won’t find many gold CEOs with smiles on their faces these days, because over the last 12 to 18 months, their share prices have barely responded to the accelerating gold price."

http://business.financialpost.com/2011/05/27/the-bullion-gold-stock-disconnect/

"A key difference between then and now is that investors who want bullion exposure have the option of going to exchange-traded funds. Many of them have taken that path, getting exposure to gold with none of the risk of having to operate mines."

History shows that these trends do not last forever, and at some point the tide will change and the equities will start to outpace gold again. But it seems that some catalyst is going to be required for that to happen.

Ironically, many experts think that catalyst might be a cool-down in the price of gold itself. If owning bullion suddenly becomes a little less attractive and investors want to put money to work elsewhere, Barrick’s nine times earnings multiple might catch some attention.

What's in your wallet? Hopefully some $20/ounce gold.

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