The question is, does the recent share price already factor in some of the future price gains in gold? Gold stocks trading at high P/E multiples are an indicator of future price expectations of gold.
It also depends on whether the POG increase is sustainable over a period of time. If the market believes that the price of gold will not be sustainable, the market will discount gold stocks accordingly.
Having said that, I don't think POG is going down any time in a hurry. Minor retracements yes, but no long-termish pull back. POG will only decline when the stock market as a whole starts improving with a good amount of confidence and investors feel safe enough to return to riskier assets.
LGL Price at posting:
$3.40 Sentiment: ST Buy Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)