This article is likely to be controversial but he may have a...

This article is likely to be controversial but he may have a point?

http://www.kitco.com/ind/Kirtley_Sam/jul122011.html

By Sam Kirtley
Jul 12 2011 10:00AM

"In conclusion we do not think gold stocks are a suitable vehicle for trading gold and we also do not think gold stocks make a suitable investment for those wishing to profit from higher gold prices. Gold stocks do not offer adequate compensation for the extra risks involved. They do not outperform. They barely offer leverage and even if they do, that is not enough. Of course there will be exceptions and opportunities for savvy investors to make money in this industry. However as a whole the entire premise of investing in gold stocks as a way to gain exposure to rising gold prices is flawed, outdated and quite frankly a "barbarous relic."

Disclosure:
I own gold (not EFT) bought over 3 years. It just sits there and has done ok - but not that well in $AUS - over last 12 months. I only have a few gold shares left now after this years beating...

I am nervous this year about buying shares now before the regular "high season" for gold and shares (August - April) even though they seem to be reasonably priced at present.

The price of gold relative to gold shares just doesn't seem to add up at present.

the risk seems high vs the return?