Blog PostThe Western Investor - Gold Stocks… The Most Undervalued Asset Class on the Market

This is giving investors an unprecedented buying opportunity in the sector.

The time to buy gold stocks is now. Never before has there been such divergence between an asset class and the related spot price of the metal. I firmly believe that the divergence between the spot price and the underlying asset class will be resolved with a massive resurgence in share prices of gold stocks to the upside. All gold stocks will at least challenge 52 week highs in the last half of the year and many will take the lead and make new highs come late fall. Double dip worries have lead to a fleeing of risk-on type assets which has led to a major selloff in a gold related name for the last 4 or 5 months while the spot price of gold has remained very strong. This is giving investors an unprecedented buying opportunity in the sector. Many gold developers and explorers are at their 52 week lows, which is a very strong contrarian buy signal. On top of a strong contrarian buy signal we also are entering into a period of seasonal strength for gold stocks and POG at the end of July which makes this the best entry point of 2011 for all gold related investments. The best value lies in the junior producer, developer and exploration categories.

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Beat the Market Stock Picks: Top Early Developers