NST - anyone else surprised by price performance last 2 days?, page-82

Hi elixir, you ask a good question.

The reality is that the entire gold mining sector is dramatically undervalued in historical terms.

A technical analyst I follow, Christopher Aaron, made the point in his most recent update that gold miners are trading at about 25% of what they should be worth at today’s gold price. In other words, the share price of the average gold miner would need to quadruple from here, with no increase in the price of gold, just to reach the historically normal valuation range.

There is clearly high potential for there to be a massive re-rating of gold stocks. It will be interesting to see what the catalyst will be for that re-rating - the BRICS conference in October? A crash on Wall Street? A break in the Dow to Gold Ratio in favour of gold? Time will tell.