Are Gold Stocks Cheap?

January 4, 2012

by Lila Murphy

The HUI gold index is down 12.4%, and the XAU gold/silver index down 20%.  The smaller companies have sustained far worse damage, with the GDXJ (Market Vectors Junior Gold Miners ETF) down 37.8% and the S&P TSX (Toronto Stock Exchange) Venture Composite down 38.7%. With declines like these despite rising gold prices, a rational investor might begin to wonder whether these stocks look like an absolute bargain.

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