Wednesday, May 14, 2008

Jr .Gold stocks vs gold ratio

The $CDNX:GLD ratio- Jr. gold and silver stocks represented by the Venture Exchange vs the price of gold represented by the GLD.

This 2 year chart shows the possible breakout from a year long nose-dive that has seen Jr. precious metal stocks badly underperform compared to the price of gold. The first signs of this breakout were charted in greater detail here last week.

This is more of a process than a specific target, and it may be months before an upward trend is set in place, but after many months of watching Jr. shares underperform, the tide may be turning.


No comments: