The HUI versus the XAU, and Gold
Started by
PorkLoin
, Oct 14 2005 05:35 PM
5 replies to this topic
#1
Posted 14 October 2005 - 05:35 PM
Holy Crow -- I had never known how much the HUI and XAU would vary in relation to each other. During 2001, 2002, and 2003, the HUI nearly tripled in its ratio to the XAU.
With the price of gold going up, it would make sense that the unhedged gold producers would gain on the hedged, and on gold mining stocks in general. I also see an odd thing on the chart -- from the bottom in 1999 to the one in 2001, gold made a higher low, while the HUI declined a lot versus the XAU.
Does anybody know the reason for this, or have a plausible theory?
Comments, questions, drunken rantings, etc., would be appreciated.
Best,
Doug
#2
Posted 15 October 2005 - 09:48 PM
#3
Posted 16 October 2005 - 12:00 PM
my bs,view,the small stocks are hard to short,,w/ the price under $4,or the vol.to thin or lack of info.
#4
Posted 17 October 2005 - 04:08 AM
Thanks Bobalou -- it could be.
HUI/XAU been going sideways for a long time now... rather boring.
Best,
Doug
#5
Posted 17 October 2005 - 05:45 AM
Hi porkloin,
check out carefully the "rounding top" chart post just above
.mss
WOMEN & CATS WILL DO AS THEY PLEASE, AND MEN & DOGS SHOULD GET USED TO THE IDEA.
A DOG ALWAYS OFFERS UNCONDITIONAL LOVE. CATS HAVE TO THINK ABOUT IT!!
A DOG ALWAYS OFFERS UNCONDITIONAL LOVE. CATS HAVE TO THINK ABOUT IT!!
#6
Posted 17 October 2005 - 08:26 AM
Yeah, mss -- I see the extreme similarity, and looks like that ratio is heading down again. Might be a triangle formation taking shape there too, mirroring the gold stocks. That triangle might be an overall fourth wave in the big move up from 2000. Or might be even more bearish yet.,
Doug