Gold Stocks to Shine in 2015

Gold stocks have suffered a miserable few years, becoming a laughingstock even among contrarians.  But this despised sector’s seemingly-endless downward spiral has left gold stocks vastly undervalued relative to gold, which drives their profits.  The fundamentally-absurd disconnect between gold-stock price levels and gold can’t last.  And it sure looks ready to end, making 2015 the year gold stocks shine again.
Any stock is a fractional ownership stake in a corporation, entitling shareholders to participate in that company’s profits.  So over time, any stock price ultimately reflects a reasonable multiple of these very underlying earnings.  If a stock price falls too low relative to corporate profits, investors step in to buy shares cheap bidding their prices higher.  And the opposite is true if a stock grows too expensive relative to earnings.