RE: why own gold stocks at all?I have followed the action you stated:
"When gold rallies strongly, the gold stocks move up marginally. When gold price falls, they tank.
We're supposed to be rewarded for taking much more risk in investing in this sector but it just doesn't seem to pan out anymore. "
I also cannot find any reason except that perhaps the shorters start hitiing the bids and drive the price down by taking advantage of the falling gold price. If they know that this action actually happens most of the time, it becomes a self-fulfilling prophecy(Robert K. Merton - Situations defined as real are real in their consequences) . JMHO s1