Golden Age? Are Gold Stocks Actually Cheap?

The HUI gold index is down 12.4%, and the XAU gold/silver index down 20%.  The smaller companies have sustained far worse damage, with the GDXJ (Market Vectors Junior Gold Miners ETF) down 37.8% and the S&P TSX (Toronto Stock Exchange) Venture Composite down 38.7%. With declines like these despite rising gold prices, a rational investor might begin to wonder whether these stocks look like an absolute bargain. I present the same chart by two different analysts (NAV estimates can be quite variable due to disparate views about capital and operating costs), as well as discount rates that can range from 0-10%. However, these charts give a general idea as to the context of where we are in terms of historical valuation.