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Gold prices are heading higher again, and yesterday hit a record high of about $1,579. This is based on beliefs that more stimulus might be coming from the Federal Reserve in order to prop up a very weak economy. For many investors, more stimulus means low interest rates and a weakening dollar. Low interest rates, and an increase in the debt to provide more stimulus means dollars are likely to be worth less in the future, and that supports gold which can't be printed or destroyed like paper currencies.

An article from the Wall Street Journal gives the summary for gold demand today and states:

"Gold demand to double in China and India based on the Indian and Chinese culture, inflationary fears, buying by the Indian and Chinese central bank, a desire to diversify wealth holdings, increase gold reserves, increased industrial , jewelry demand and increased demand by a growing population."

Here are some low priced gold stocks that are highly leveraged to the price of gold and are showing strong rebound potential:

Golden Star Resources, Ltd. (NYSEMKT:GSS) is a gold mining and exploration company, located in Colorado. This company has gold exploration projects in Ghana, Sierra Leone, Niger, and Brazil. The stock dropped to the $2.20 level recently and has rebounded sharply, so it could be smart to wait for pullbacks before buying.

Here are some key points for GSS:

Current share price: $2.74
The 52 week range is $2.14 to $6.01
Earnings estimates for 2011: 9 cents per share
Earnings estimates for 2012: 29 cents per share
Northgate Minerals, Ltd. (NXG) is a gold mining and exploration company, located in Canada. This company has gold exploration projects in Australia and British. The stock dropped to the $2.60 level recently and has rebounded sharply, so it could be smart to wait for pullbacks before buying.

Here are some key points for NXG:

Current share price: $2.88
The 52 week range is $2.41 to $3.54
Earnings estimates for 2011: 3 cents per share
Earnings estimates for 2012: 17 cents per share

Great Basin Gold, Ltd. (NYSEMKT:GBG) is a gold mining and exploration company, located in South Africa. This company has gold exploration projects in South Africa and Nevada. The stock dropped to the $1.80 level recently and has rebounded very sharply, so it could be smart to wait for pullbacks closer to $2 before buying. However, with a lower stock price and higher earnings estimates than a couple of the other gold stocks here, this has more upside in the long run.

Here are some key points for GBG:

Current share price: $2.22
The 52 week range is $1.67 to $3.32
Earnings estimates for 2011: 9 cents per share
Earnings estimates for 2012: 23 cents per share

Rubicon Minerals Corporation (NYSEMKT:RBY) is a gold mining and exploration company, located in Canada. This company has gold exploration projects in Ontario, Canada, Alaska, and Nevada. The stock dropped to the $3.40 level recently and has rebounded, so it could be smart to wait for pullbacks before buying.

Here are some key points for RBY:

Current share price: $3.66
The 52 week range is $3.17 to $6.34
Earnings estimates for 2011: Not available on Yahoo Finance
Earnings estimates for 2012: Not available on Yahoo Finance
North American Palladium Inc. (NYSEMKT:PAL) is a gold, and metals mining and exploration company, located in Colorado. This company has gold exploration projects in Canada. The stock dropped to the $4 level recently and has rebounded sharply, so it could be smart to wait for pullbacks before buying. North American Palladium just announced that the Vezza gold mine will begin production early next year:

Here are some key points for PAL:

Current share price: $4.68
The 52 week range is $2.97 to $7.99
Earnings estimates for 2011: a loss of 4 cents per share
Earnings estimates for 2012: 29 cents per share

Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.

Source: 5 Low Priced Gold Stocks on the Rebound