Seriously, and how big is his truck anyway?

In all honesty, though, I am extremely tempted to make another bite here. Fundamentally, we all know what is going on. We've beaten the fundamentals into the ground.

Technically, though, here is what I want to talk about. Has anyone looked at the HUI/GOLD ratio recently? We are at roughly .35, meaning it takes .35 ounces of gold to buy one share of the entire HUI. Now, I know Tyhee is not in the HUI, but it is the nearest proxy to all leveraged gold shares I can think of.

The average, over the last five yeas, has been about .50, meaning all HUI components would need to go up by 43%, or gold would have to drop to $650/oz, for this ratio to get back to historic norms.

The last time this ratio was at .35 was in 2003 when gold was around $400. So, relatively, gold equities have not been this cheap since 2003.

Now, by this low ratio I believe this is a case where the market is telling us that it doesn't believe that the POG is going to stay where it is. I think the market is wrong.

Turning to the juniors and Tyhee specifically, WE HAVE ALREADY HAD THE CRASH. Tyhee is down roughly 75% from it's 3 year peak, while it's fundamentals have inproved both in numbers of ounces and in the price of each of those ounces. I guess perhaps we could get down to a 90% crash, but given that I think gold prices should be moving up shortly, I really think the risk to reward ratio is quite favorable here.

I am not making any recommendations, only that those of you who are averaged in at much higher prices may want to consider averaging down here, if you believe in the fundamentals. Anyone have other thoughts? I am not pumping, just discussing technicals I observe.

H