I find the relationship between the mining shares and the related metal fascinating.

On a Friday in July, a month during which Gold usually doesn't perform that well, Gold will see all time closing highs on a daily, weekly and monthly basis.

Despite this very bullish fundamental, the $HUI will close almost 11% below its 52 week high, whereas the S&P 500 will only close 5.4% below its 52 week high.

Many Junior gold related companies will close dramatically below their 52 week high.

For example:

GSS -57% below

GBN - 39% below

AAU - 37% below

JAG - 42% below

There are many more examples.

For what it is worth, ECU looks like it will close roughly 50% below its 52 week high.

Imagine if Gold was closing at new 52 week lows in the $1,150 range....where would we be?

Well, if the hedge funds and there ilk had gone long the shares and short the metals.....many mining shares would be higher than they are today.

Wouldn't it be nice if the shares traded more closely with their fundamentals as opposed to prices dictated by hedge fund strategies.....