My guess is that gold companies are waiting for a (much needed) correction in gold prices. I think everyone here has posted good info on the subject and my opinion leans toward that of H_rattle.

However, I also agree that gold has a lot more room to grow in price, I also believe the market thinks the same thing. Once the next leg up begins (after the much needed correction) Gold shares will climb as well.

all my opinion of course and that's the way I've been planning my strategy.

When the investment newsletters in the US (those published by Agora Financial for example) recommend to their readers that the only countries that really deserve a AAA debt rating are Switzerland, Australia, Norway and Canada, the latter 3 because of their resources in the ground while at the same time saying diversify away from the US dollar then gold becomes a place of safety (for Americans especially). For that reason gold will eventually go up because the USD will drop if for no other reason.

I've always believed that Us residents and those who use the USD as their main currency have the most to gain by owning gold vs USD. However noone is immune to a falling USD. that being said, Gold and Oil will continue to proced in USD for the forseeable future as there is no alternative currency that has widespread acceptance and stability ... stability being a relative thing here.