Loading ...[Charts indicate gold is going to 800-1000 bucks–but this is interesting, neamoins]
The HUI/Gold ratio closed today at a new all time closing low of 0.133, which means never before in world history have gold mining stocks been as undervalued relative to the price of gold as they are today. The previous record closing low for the HUI/Gold ratio was 0.135 on November 17, 2000 – nearly 14 years ago.
After the HUI/Gold ratio finished November 17, 2000 at 0.135, it rallied 99% over the following six months to a high on May 21, 2001 of 0.268 – as a result of the HUI rising 113% and Gold rising 8%, with Gold Stocks making 14X larger gains than Gold.
After a six month 18% pullback to 0.221 on November 26, 2001, the HUI/Gold ratio rallied another 105% in six months to a high on June 3, 2002 of 0.452 – as a result of the HUI rising 146% and Gold rising 20%, with Gold Stocks making 7X larger gains than Gold.
All together, after the HUI/Gold ratio bottomed at 0.135 on November 17, 2000, it rose 235% to a high of 0.452 in just 18 months – as a result of the HUIrising a total of 311% and Gold rising a total of 23%, with Gold Stocks making 14X larger gains than Gold!