Gold Stocks Outpace Gold Last Month

Someone who believes that gold stocks outperform gold in bull markets hasn't had an easy five years, but did have an encouraging month. According to the Globe and Mail, the S&P TSX [Canadian] Gold Index was up 21% in November. Gold itself was up 15%.

Also mentioned in the report was: a) the broadening of gold's appeal into the mainstream; and, b) fears of a gold bubble. Like it or not, gold's an alternative investment; a lot of goldbug enthusiasm is compensatory.

The latter half contains a balance of opinion. A vice-president at Leede Financial Markets Inc. in Calgary, Sheryl Purdy, says that the mainstreamization serves as a clear sell signal; she's the "prudent bear" of the pair. Sprott Asset Management's Charles Oliver reiterated his call for $2000 gold, although he acknowledged the possibility of corrections along the way. (He also didn't give a timeframe for his target price.)