I agree there is rarely a 100% correlation, although we have been pretty close to that the last six months.

However, it is my contention that the HUI will be following gold now, not the stock market. Last year we had gold falling as stocks crashed, thus the HUI slaughter. One need only go back to the period from October 2007 to March 2008 to see that when major indexes breakdown but gold moves up, the HUI follows gold, perhaps not every single day, but as a net result.

H