$GVZ Weekly

Why has there been such a disproportionate decline in Canadian gold mining shares during the gold price correction, especially since the $CAD gold price is very strong and costs are in $CAD?

We now know the reason, that gold mining shares have been priced in terms of the volatility in the $U.S. dollar gold price. This would explain the massive spread between the gold price and mining shares.

Normally $VIX would be used as a determinant in pricing indeces, as long as $VIX remains low, than indices will rise on very little volatility. The same is applied not to gold prices, but to mining share prices in a similar manner, but in the reverse.

http://schrts.co/b3YfKJ

-F6