I agree gold stocks are undervalued, but it all depends on why gold is going up - recently it's been because of the fear trade, which is not good for stocks - especially the speclative explorers I recently bought. So far this year, gold and the Venture have gone in opposite directions - Venture is down 20% while gold has been on a tear. There should be a 2-3 week respite from the fear trade, so gold should pull back & stocks should outperform (providing Klaus a chance to lighten up).
Still, the ferocity of the recent plunge makes me think there will be another leg down. I suspect the fear trade will make an encore presentation - probably in the often scary Sept-Oct time frame. Gold producers should do fine during this time, but the speculative names will be vulnerable. I'm an active trader, so I prefer to sell into strength and buy back cheaper if possible.
I do think the greed trade returns later in the year & the juniors will have a nice run.