The fall in gold prices recently has led to significant declines in most stocks. IAG is down more than 70% from its 52 week high of $16.88. The recent leg of the fall has led to 25% fall in many stocks. During this period, the gold prices have fallen by 15%. There has been a rebound over the last two days, and even IAG has appreciated by 13%. The fall has made the valuations attractive and IAG is trading at around 7 times forward earnings. Like most companies with exposure to gold, it is trading at a discount to book value. However, the stock is much more attractive on this metric as it is trading at 0.41 times its book value per share. Even the price to sales is less than one. The dividend yield is now exceptionally high. The fundamentals have not been very consistent, but there has been growth over time. The last quarter was not very good, and the revenues and net income declined significantly. However, the sentiments are linked more to the movement in gold prices, and that is holding back investors to take a dip in the sector. More people are getting positive on the possibility of a rebound. Jim Rogers had indicated last month that he may buy more gold if it falls to $1300 per ounce. Other investors like Marc Faber have also expressed optimism that the price may rise, and the mining stocks may rebound even stronger. The valuations are obviously another factor which may lead to stock picking. Some development stage companies like Pershing Gold Corporation (PGLC) are available at a significant discount to potential. Zacks has a Price Target of $5.50 on IAG, and analysts at RBC have increased the PT from $6 to $7. Most analysts have a buy rating on the stock. In the short term, if there is stability in gold prices, a range bound movement can be expected. IAG can be a good bet..