$SPTGD Weekly

No other chart demonstrates how WILDLY out-of-whack Canadian-listed gold mining stocks are. The spread between the mining stock indece and $CAD gold prices is extreme, and had been maintained at an extreme for a considerable length of time.

What gold miners are entirely missing is that in a declining yield for government bonds, they are under the direct obligation to provide a yield, and not to rely on investor credit to achieve alpha. That investors will rely on credit to boost their returns is a given, so when yield is no longer forthcoming, and all gold miners caught in their own downward spiral, guess what happens.

But they have had it land in their laps that higher gold prices are now a given. I would say that the market is in need of a bright spot on an otherwise very acne-ridden blemished record, and emerge from their troubling adolescence.

http://schrts.co/zwmFYa

-F6