gold companies at bottom of a mega cycle?, page-3

Hi Rutz,

That sounds like a good explanation. Would be interesting if we could find some numbers to support it.

If true it does help to explain the relative deflation of the gold stocks, before and after the GFC, as measured by the HUI-gold ratio.

Another point I wanted to mention in my original post was that when the gold price and the HUI were at their all time highs (blue line) in Sept 2011, the HUI-gold ratio was already signalling that the gold bubble had burst or at least was leaking badly. Maybe it was just the smart money abandoning the ship that caused the run downwards. Just a thought.

SilentO