on what basis can you say gold stocks are overpriced????
gold has been down to 20 year lows within the past 18 months and has only climbed 20% above that now. get that - 20 year lows! we have only had a mild recovery so far, the price is still below what it was barely a year ago. there is plenty of head room before this recovery can be called overdone.
the elevation in prices of gold stocks we have seen is not related to hype - its related to a direct increase in profitability as well as an increase in reserves as a consequence of an increased margin of price over cost of production. we are talking real dollars and real profits. not the "business model" crap and "its a new way of doing things" we heard in the dotcom era.
gold stocks overpriced?...... how can you judge that? one way (out of many) to do that is to look at market cap per ounce of prioduction or ounce of reserves and compare current multiples to those that existed in the 80's. have you done that? if you havent then your post is way under-researched.
trade with the trend, thats all every is doing here.
