Don't buy Gold shares.They are manipulated too easily, you will get taken to the cleaners.Always lots of rumours and potential lucrative finds ahead,they keep peddling the same story to different generations of investors.If you want Gold,buy coins or bars.

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pgd (one of mine) have spectacular drilling results recently and this is their second set. They are an explorer though trying to increase resource base, have great management.

I have small position with them, up about 35%. If you are buying gold stocks look for producers increasing output or juniors with lots of gold underground.

Gold stocks are undervalued at the moment, AIM is not the best place to buy, TSX is better. Never the less in a parabolia even AIM stocks will rise.

expect this to happen soon, maybe end of this year or 2009. IMO.

also hold the physical as advised.

The problem with Junior gold shares at the moment is funding. Small Juniors are finding it very difficult to get money in the current banking climate and costs are going up as well. Therefore not many projects are going forward. The thing that could start to drive things forward are the major producers starting to make big profits and then going on a shopping spree to replenish assets. They will only be interested in big deposits but will have cash to pay for them. This may in turn lead to a renewed investment interest in the area and the possibility of funding through equity issue as well.
At the moment this is not happening and good Juniors are beaten down to bargain prices. The danger is that they could fall even further from here.
One strategy would be to buy Juniors which already have enough cash flow to see them through to production and also expansion opportunities which can then be funded through internal cash flow.

D3mOn,

Ever since I bought gold about five years ago, I have avoided gold shares.

As a value-seeking investor, the P/E ratios of the miners were regularly 40+, which in my book, is a bubble (despite gold not being in a bubble).
Gold shares as a group have not done much spectacular for a few years now (considering the risk) and have slightly underperformed the bullion price.

The oil companies have been selling for P/E's close to 10 for a few years - the oil shares and oil price have done well.
With oil shares sensibly priced in recent years, I fail to understand how gold shares could be priced at such high valuations.

Gold shares are not for me.

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