Is the gold mining sector about to take off?

Gold has had a quiet year. Despite the prospect of more money printing by the world’s central banks, and minuscule interest rates, it seems that not many people see inflation as a big threat at the moment. But things can change quickly in the financial world. Often the best time to buy things is when nobody really wants them. It’s interesting that renowned investors George Soros and John Paulson have been buying gold recently. It looks a smart move to us. Gold is worth holding, if only as a form of insurance against paper money going bad – which it eventually will, if all the printing continues. We certainly see no reason to hold low-yielding government bonds. But what about gold mining stocks? If you believe that you should own gold and that it will go up in price, surely gold stocks are a good investment?