Golden Gains Come After The Pain

Jon Blogosphere, Economy, Gold, Market Commentary, Precious Metals

HUI/Gold Ratio, National Inflation Association
When the HGR is rising, gold stocks are outperforming gold. Conversely when the HGR is falling, gold is outperforming gold stocks.

Since 1996, the HUI/Gold ratio has averaged 0.363. The all time low HUI/Gold ratio was set on November 17, 2000 when it bottomed at 0.135.
The HGR closed Wednesday November 20th at .148.
The above data tells me gold mining stocks are extremely undervalued and way oversold compared to the price of gold. Can I make some money off that bit of knowledge, am I looking at a potentially profitable investment into a few well chosen gold company’s, do I wait a bit or pull the trigger now?

This post was published at Gold-Eagle on November 22, 2014.