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Strategies & Market Trends : Precious Metals mutual funds (gold, silver, PGMs) -- Ignore unavailable to you. Want to Upgrade?

To: Wade who wrote (761)	9/14/2003 3:08:26 PM
From: Larry S.	Read Replies (1) \| Respond to of 972

Wade, The GMI is the Barron's Gold Mining Index the POG is the Price of gold. If you go back to the first 40 to 60 posts on this threat you will see that Richard Mazzarella, who started the thread, was looking at the ratio of various stock indexes as a TA tool to know when to buy/sell. He observed that the XAU was not very good as a gold stock index because it included some base metal companies and Barrick that is more of a hedge fund. He suggested that Barron's index and gave the following reference concerning the significance of the ratio: essextrading.com. Since I subscribe to Barron's Online, I agreed to post the ratio. As time passed, I Richard and some others lost interest but I have kept posting with the expectation that I would some day have time to put all the info in my posts into spread sheet and get more information from it. It doesn't appear that I will ever get there but I haven't given up the thought. WRT the limited posting of comments, there are several people that check the thread weekly and don't post and, for all I know, Richard may be one of them. As time past, I started adding a bits about relevant comments in Barron's and, as I learned more about the market, I added a bit most weeks on the lease rates. While the POG was falling, they would move up or down with the POG. But, when the POG turned, I noticed from Kitco's posting of rates that they dropped after every move up in the POG and visa versa. This, to me, was a clear indication that the Bullion Banks, that had played the carry trade game, were selling leased gold into the market to hold the price down - protecting their short position. FWIW, I have questioned on occasion the idea that the GMI is any better than other indexes such at the HUI. It has Barrick in it and isn't pure gold stocks. I lost my copy of the components of the Index when hard disc crashed a few months ago but I will get it an post it next week if my memory doesn't fail me. Enough for now - this is probably more than you wanted to know. Larry