GOLD 0.51% $1,391.7 gold futures

How cheap are gold shares?

  1. 24,765 Posts.
    We keep getting told that gold is unloved and gold shares are historically very cheap compared to gold. Is this correct?

    For example, SBM has gone up 600% in the last year.

    In the last bull run gold stocks peaked at around US$1300 gold (eg. that’s when KCN hit $12.30) and many gold stocks were not higher at US$1900.

    But that’s when all these internet gold experts kept telling us how underpriced gold shares were compared to gold, getting folks who had sold out back into gold stocks in time for them to be massacred.


    Back in August 2011 when gold peaked at around US$1900 I cannot remember there being so many Australian listed gold companies capitalized at multi billions of dollars.

    There are now numerous gold companies capitalized at billions of dollars.

    Here are just a few:

    NCM
    NST
    EVN
    SAR
    OGC
    RSG
    SBM

    Also, for a supposedly unloved sector the turnover value has gone through the roof. Just look at NCM as an example.
    Last edited by siameseparrot: 08/07/16
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.