Year-to-date (YTD) a large performance spread has opened up between U.S.-listed large capitalization gold stocks and the mid-tier intermediate and junior gold companies listed in Canada. The XAU Gold & Silver Index (10) is up 24.91 percent YTD while for local investors in Canada the S&P/TSX Global Gold Index (11) is down 1.92 percent YTD, a performance gap of 2,683 basis points. Even factoring in the increase in value of the Canadian dollar this year the performance gap is still 1,017 basis points. More than 40 percent of the XAU Gold & Silver Index is composed of just two companies which are up 80.44 percent (FCX) and 33.12 percent (ABX) YTD. Historically, such a performance gap can be closed by a decline in large capitalization stocks or a rise in the performance of their intermediate and junior peers.

I'm betting the juniors come up.

Either way, NOT looks good to me!

BK