Like most stocks, AEM has also bounced strongly over the last few days. The 10% rise has been accompanied by good volumes, and may continue for a few sessions. This may be a technical bounce, but it is also possible that the move may stretch over the next few days. The stock has fallen by more than 50% from it 52 week high. A substantial part of the fall has happened in June. Just prior to that there was some stability, and most gold stocks had started to trade in a range. If the recent lows hold, then the stocks could start a new range. Next week's action will determine how it goes from here. The valuations of Agnico are much better now and it is trading at 17.5 times forward earnings. The price to book of 1.26 is reasonable, but a little high as compared to the peers. The recent crash has made the gold mining stocks trade at a discount to book value. Development stage companies like Pershing Gold (PGLC) are trading at even lower valuations. The sentiments are bad, but some investors may start to take a dip soon. Jim Rogers had stated that he would buy gold if it falls to $1300 / $1200. Marc Faber also expects a rebound in gold due to the expected devaluation in currencies. He is expecting a stronger rebound in gold mining stocks if the gold price rises. So legendary investors are getting a little positive and valuations are better. But not many will take these arguments now, and would like to wait for some positive signs. The key to a rebound is holding of the recent lows. Thereafter, the stocks may start to trade in a new range. That will actually be a good outcome considering the overall mood in the sector.