I see the big move is about to start. Charts look ready to explode. It's about time.

good stuff, this is my thinking as well. the miners are relatively inexpensive in relation to gold. so , i am awaiting their arrival, it should be this month. i am looking for a recognition in the metals and their shares. so far, its the bugs and the technicians. there are severe problems out there.
anyway, i am w/the both of you. dharma

Howdy,

We'll have to see, but I suspect you may be right. The gold/XAU ratio has been sitting near or even above 5.00 for the past several months and that sort of divergence can't last for long before something has to give.

The research I've done has the 5.00 as a buy the miners signal and the 3.00 range as a sell signal. However, just to be fair, while 4.00 is 'equilibrium' if you will, when it gets this high, either miners have to rise, or bullion has to sink.

Yesterday, howeve, with the $20 selloff in gold, and similar in the other metals, the XAU only dropped a little over 6. Today it gained 7.70 and the ratio at closing is 4.87.

Another ratio that I follow closely (something us technically challenged do) is the gold/silver ratio and it finally made it to the 47s today.

If you historians will recall the ratio of silver to gold has always been between 15-20 to 1. By always, let's just call it the last 5,000 years and it's close enough. That has changed since we went off the gold (and silver) standards as early last year was up around 70 to 1. Now it down to 47 to 1 and dropping.
Of note is that at the peak in 1980, gold topped out at 850 while silver topped out at 50 . . . or 17 to 1.

And this is one reason why I overweight silver. Besides in the late 70's gold a little more than doubled to 850, but silver went up tenfold to 50. And folks, I can remember buying a roll of American Silver Eagles for under $100 including shipping and handling. ;-) . . . and for that matter buying gold eagles at $335.

Now I'm just hoping for a spring/summer pullback so I can back up the truck and buy a LOT more.

BTW, I added to both CEF and HL today and am riding:

TGLDX, UNWPX, CEF, ASA, SLV, GLD, GDX, GG, AUY, KGC, JAG, SLW, SLV, PAAS, HL, SVMFF.PK and STVZF.PK with a heavy dose of PRFPX thrown in for shrieks. Of note is that AUY and SVM are both up over 400% and SLW is over 380%.

These are the best of times, boys and girls, but it's a very tough market to trade actively without making a lot of trips to whipsaw city.

peace,

rono