In the past six months, all supports for gold have been absent and the environment has been extremely bearish. I will freely admit that I generally don't get involved in gold stocks. Golden Star has its share of ifs. However, unlike many of the gold exploration stocks, it actually owns a chunk of a producing mine and can get some cash flow from that property. The determinants of price appreciation for a stock like Golden Star are the perceived potential of finding gold at exploration sites and the price of gold.
Golden Star is thought to have a promising portfolio of exploration sites.
Positive news from any one of them could move the stock. The contrarian in me says that with everything I read being negative for gold, the bad news must already be in the price of the metal. There are some long-term reasons to suppose that gold will become more precious down the road. It is a matter of when, not if. There is a multitude of junior gold stocks to consider, and I would not single out Golden Star Resources as the best opportunity there.