5 replies to this topic

[PorkLoin]

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

[PorkLoin]

[bobalou]

my bs,view,the small stocks are hard to short,,w/ the price under $4,or the vol.to thin or lack of info.

[PorkLoin]

Thanks Bobalou -- it could be. HUI/XAU been going sideways for a long time now... rather boring. Best, Doug

[mss]

Hi porkloin, check out carefully the "rounding top" chart post just above .mss

[PorkLoin]

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