Though gold stocks have not reach the irrational exhuberence of the internet-garbage couple of years ago, they are nevertheless overpriced at current levels.
Gold may be heading higher in USD but it is static in AUD.
(Some) Gold stocks are trading at unsustainble prices so upside may be limited even if gold hits USD$350/oz.
Again, one can make money from the next gold rally but don't hold onto certain stocks for too long.
Other gold stocks which are undervalued may fair better.
So do not get too excited over some AUD domestic producers.
Technically the price of gold in USD terms is constructive an an assult on the USD$320-$350 level is a possibility.
After that it will be the US$370-$390 where the market broke down in 1997 after our beloved RBA announced that it sold most of its gold reserves.
Until then
Arhidas
Gold stocks?
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