Have you noticed something about yesterday and today? Despite...

Have you noticed something about yesterday and today?

Despite gold falling from US$1910 to below US$1750 - a decline of more than 8%, the HUI has declined significantly less and our XGD Gold Index has only declined from a 7909 high this week to 7638 at time of writing.

That is a token decline of 3.43%.

Can anyone remember when last a decline of more than 8% in gold would produce a decline of just 3.43% in gold shares.

It is a fact proven by the HUI's rise from 36 to over 600 this century that gold shares have strongly outperformed gold, despite underperforming since early 2008.

With gold in a new, record high trading range, my view is that gold shares are again in the earlly stages of seriously outperforming gold.

After all, this is what gold shares have traditionally done in a gold bull market. Provide strong upside leverage to increasing gold prices.