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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?


To: rubbersoul who wrote (55168)1/9/2008 11:22:35 PM
From: Mr. Aloha  Respond to of 78409
 
Here are some specifics of the gold/XAU ratio, which hit a buy signal with a pop over 5 last month:

Message 24151190

Perhaps the most reliable buy signal for the mining sector is the GOLD/XAU ratio, which just hit a buy signal:

hussmanfunds.com
“To put some historical context on this measure, since 1974, the GOLD/XAU ratio has been greater than 5.0 about 15% of the time. When the ratio has been this high, the XAU has followed with annualized gains of 89.6%, on average – a figure that remains high even if the data is split into multiple samples. When the ratio has been greater than 4.0, the XAU has followed with average annualized gains of 27.4% (though the finer profile of returns has been sensitive to other conditions such as interest rates, economic trends, and inflation). In contrast, when the ratio has been less than 3.0 (meaning that the gold stocks are very elevated relative to the actual metal), the XAU has declined at an annualized rate of -36.6%, on average.