It will bounce back once the market realizes that the new Peruvian president is more moderate than expected. The latest news coming from Peru suggest this.Also, several sources mention GFI as a good buying opportunity after the plunge. I wouldn't be too worried about it at the moment.
Im not so optimistic. There is a big disconnect between stocks and the gold price and I think gold is going to sit / drift slowly down until the end of the northern summer as it usually does. With no cue from the gold price why would the stocks move higher?
Are you guys suggesting as a long term buy or a short term trade. Just have a look at the major gold shares 5, or even 10 year performance. You would have underperformed the majority of the Top 40 stocks considerabily. I really dont see any point in holding gold shares for the long term (sorry Dr. Roffey) If you are considering a short term trade, then it could be a different story.