One executive calculates that current valuations translates to long-term gold prices of $1,200 per ounce. Gold stocks use to trade above a multiple of twice their net asset value but they are now at below 1.5 times.
The top executives contend that share prices are deflated because of a series of poor gold company deals and the shortage of new, high-grade gold deposit discoveries, glancing over loose monetary policies and inflationary concerns. However, others believe that gold prices and stocks are uncoupling due to a fundamental shift in the way people invest in the sector.
Market Vectors Gold Miners ETF
For more information on gold miners, visit our gold miners category.
Max Chen contributed to this article.