OASIS FORUM Post by the Golden Rule. GoldTent Oasis is not responsible for content or accuracy of posts. DYODD.

Trader Dan notes the undervaluation in PM stocks-as I did today with JNUG-which came close to the 12 mo. low of 8.43 when gold was 1180

Posted by Richard640 @ 23:25 on October 22, 2014  

Wednesday, October 22, 2014
HUI to Gold Ratio Collapsing

There is only one comment that I can make based off of what I see from this chart; either the gold mining stocks are tremendously UNDERVALUED compared to the price of the metal or the gold price is way too high.

 

This ratio just touched a level last seen in DECEMBER 2000! That is FOURTEEN YEARS AGO!

Perhaps some more of these gold miners need to head to bankruptcy but with the ratio at current levels, and with the HUI itself trading at a SIX YEAR LOW this month ( refer to that chart I posted previously today) I am leaning to the view that the gold price is too high.

Talk about a disaster….

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Post by the Golden Rule. Oasis not responsible for content/accuracy of posts. DYODD.