From the latest Frank Holmes article:

http://www.321gold.com/editorials/holmes/holmes022312.html

While the historical ratio (of gold and silver index units that can be purchased with one ounce of gold) averaged 4.5, today an investor can buy more than 8 units of the XAU to one ounce of gold. In other words, shares of gold mining companies can be purchased at one of the cheapest levels in nearly 30 years.

Dave Rosenberg from Gluskin Sheff also favors gold equities. He particularly likes miners who can grow production and reserves while keeping costs under control. “Because input costs tend to be more positively correlated in the early years of a rally, history has shown that the equities tend to dramatically outperform the bullion in the later stages of a gold bull market.” He suggests buying undervalued gold mining stocks in politically safe areas with higher-grade projects and a relatively simple way of extracting the metal.

The FS will give more detail on the way of extracting the metal, and GT has said there are no unusual problems anticipated in the mining process in a previous question asked by the Board, but otherwise Tyhee fits the bill. Ike