by Adam Hamilton
Zeal LLC
Gold-mining stocks surged higher this past week after breaking free from their high consolidation. This newest upleg catapulted gold stocks to a doubling in less than 3 months, a remarkable world-leading performance. But despite its quick doubling, this red-hot sector still has another easy doubling left to come from here. Gold-mining stocks still remain greatly undervalued relative to prevailing gold prices.
Gold stocks’ whipsawing journey so far this year has been nothing short of incredible. Back on January 19th, less than 3 months ago, the flagship HUI gold-stock index plunged to 100.7. Those levels were utterly astounding, as that was the HUI’s lowest close since July 2002. Back then gold was trading near $305, and had yet to exceed $329 in its young secular bull. Revisiting those levels felt like a gold-stock apocalypse.