The Most Shocking Charts That Relate To Gold, Silver And Mining Shares!

With continued uncertainty in global markets, investors are wondering what’s next for gold, silver and the mining shares.

“We must not lose sight of the fact that the U.S. economy and markets are a hall of mirrors. Thus they are not as they appear on the surface.” — Bill Fleckenstein

King World News:  Today the HUI Gold Mining Index closed just 3.5 points away from a new 52 -week high and the HUI is also now very close to hitting 39-month highs.  The action in gold, silver and particularly the mining stocks has been relentless on the upside.  Despite the recent rally, the mining shares remain extremely discounted on a historic basis vs gold…

There has been a great deal of worry about the recent and rapid advance in the gold and silver mining shares.  This is why it’s so important to take a step back and look at the big picture.  Below KWN readers around the world can see a 32-year chart of the XAU (mining share index) vs Gold ratio.

32-Year XAU vs Gold Ratio

KWN I 5:12:2016

King World News:  The reason the above chart is so important if you own gold and silver mining shares is that it shows the mining shares in recent years have collapsed vs the price of gold.  If the median point of the XAU vs Gold is about 0.25, that means the mining shares will have to outperform the price of gold by a ratio of more than 3:1 just to get back to the median historic level.

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King World News

Interviews with market experts from around the world with a focus on precious metals.