HUI vs GLD -25%
XAU vs GLD -30%
GDX vs GLD -27%
XGD vs GLD -38%
Average of these indexes vs GLD for the last 1 year is -30%.
If gold is mispriced it should be $1217.
Maybe even a lot less because gold mining companies are geared up.
Printable View
HUI vs GLD -25%
XAU vs GLD -30%
GDX vs GLD -27%
XGD vs GLD -38%
Average of these indexes vs GLD for the last 1 year is -30%.
If gold is mispriced it should be $1217.
Maybe even a lot less because gold mining companies are geared up.
The companies themselves have geared up because they can see the profits well in advance, in many cases mining material they'd have left alone if the gold price was lower. Caterpillar are doing well, other companies supplying the mining sector with new equipment and repair parts recovering strongly also, so the writing is on the wall, there should be another boom about to start in goldie stocks. Keep an eye on shareprices relative to US$ gold price, and the "Gold buys the DOW" charts. These will tell a fair bit of the story.
Too bad if the shares are right, those krugers are gonna be worth at least $500 less each.
That's the way it worked in 2008 when the price of oil crashed, oil shares were signalling way in advance that there was a mispricing.
I really think 2012 will be good for many gold/silver shares most likely later on when gold break $2000oz USD ...the major investment funds will soon switch from the paper gold ETF's to the large cap gold producers to not miss-out on the re-rating that must happen with so many of this Producers massive growth of EBIT into turn producing good yeilds...this move at the top will filter down to the smaller producers from more M&A in the sector ...which must be coming up soon when some explorers have muti million oz resources valued at only $17-$18per oz JORC(PXG) when back in the last worldwide M&A frenzy of 03-04 many large caps would be more than happy to pay near the gold price of the time to own good gold reserves
-It's not a matter of If the sector will move but when...an I for one won't be sitting on the sidelines scared of taking the risk ....I'm in boots an all
The GDX gold index tracked the gold price until May 2011 and is now 27% behind gold.
You're way out Denpal, the Moneychanger reckons it could get to $2600 this year!It has been a spectacular week for anyone holding gold, silver, or related shares. In a way it's been predictable, as gold moved back to its trend lines on a longer term basis. It overshot a while back, but it's keen to get moving again. I wonder if this means that oil is going up to match it. (Looks like infomine compares ounces with ounces, the normal ratio is about 15, or number of barrels of crude bought with an ounce of gold).