By Adam Hamilton
Gold-Eagle
Gold stocks have lapsed back to despised status after late March’s sharp selloff. Thanks to their strong 2014 rally before that, traders were slightly warming to this abandoned sector. But despite the rekindled extreme bearishness, gold stocks remain the greatest bargain in all the stock markets. Their prices are still absurdly undervalued relative to gold which drives their profits, fantastic buys for brave contrarians.
The precious-metals miners and explorers are just reviled these days, the laughingstock of the stock markets. And this is understandable given their disastrous performance last year. While the benchmark S&P 500 stock index soared 29.6% in 2013, the flagship HUI gold-stock index plummeted 55.5%! That has to be one of the biggest sector performance gaps in history, a total nightmare for this small sector.