Thanks to both of you, although I do prefer being given the link to an article - thanks Ten Bagger - that way it's less space on the page, less problems in format, graphs are in place.

I concur with his thinking entirely - gold stocks, vs. the price of gold, have been in a trough for a long time, and there is always eventually "reversion to the mean".

That said, in my experience gold stocks tend to start rising again when small cap stocks are set to rise.

We are at the very tail end last gasp of an overmature market, with large caps still clawing onto the window ledge before falling off.  There will be a (longish) period of consolidation, I think, and then small caps and gold will take off again.

The gold stock / gold ratio is on a very roughly 4 to 8 year period, so we know the stocks are set to go, but it could be anywhere 2008-2011.  Subprime will mess with that somewhat (I will be watching failures of asset backed securities to pay interest on Dec 31 2007 very closely).

KXL's story will, I think and I hope, motor right through all of that.  The resetting of the ratio will probably be something that boosts KXL even further when it has a 43-101, down the road

best of the season