HUI/GOLD ratio

By Adam Hamilton

At 0.157x this week, the HUI/Gold Ratio has never been lower in this entire secular bull! This is well below even the gold-stock extreme seen during 2008's stock panic, which was the greatest fear event anyone old enough to be investing then will witness in our lifetimes. Gold stocks are so unpopular, so voted out of favor, that they are now trading at end-of-secular-bear levels relative to gold. This is crazy.

And totally fundamentally absurd! The HUI hit 193 last week, a level last seen in November 2008 in the dark heart of the stock panic. Yet back then, gold was merely trading near $745. Last week it was 65% higher near $1226! Is it rational for gold stocks to trade as if gold was nearly $500 lower? Of course not, it is just ridiculous. Investors are absolutely wrong in abandoning gold stocks to such silly valuations.

Artículo completo: http://www.safehaven.com/article/32118/contrarian-gold-stocks-3