Short-Term Concerns for Gold Stocks

It's time for a pause in the gold-stock rally – not a dramatic selloff, just a brief pause. Even after the big rally over the past couple months, the gold stock-to-gold ratio is still about as cheap as it has ever been during the past decade. The only time gold stocks have been cheaper was during the panic selloff in 2008 and the May and July declines this year. So the longer-term picture remains bullish for the mining sector. It's the shorter-term picture that causes concern.