"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 5 mins Google Invests $300 Million To Combat Fake News
  • 1 hour Zuckerberg Dodges A Bullet As Facebook Loses Billions
  • 2 hours Tesla Tumbles As Investors Lose Patience
  • 4 hours Are Alt-Coins On The Verge Of A Break Out?
  • 5 hours What Should Gold Investors Expect From The New Fed Chair?
  • 7 hours Who Will Pay For Trump's $60 Billion China Tariffs?
  • 22 hours Vladimir Putin’s Mysterious Fortune
  • 23 hours Cryptos Resist Social Media Crackdown
  • 1 day The Death Of Dodd-Frank
  • 1 day Bitcoin Bounces Back Ahead Of G20 Meeting
  • 1 day Trump's Trade War Nears Boiling Point
  • 1 day Will April Be A Turning Point For Precious Metals?
  • 1 day Economic Pressures Weigh On Banks And Borrowers
  • 1 day U.S. Political Uncertainty Keeps Stock Markets On Edge
  • 2 days Gold: The Religion Of Currency
  • 3 days Economists Polarized On Trump’s Tariff Plan
  • 4 days Why Are Investors Overlooking Gold Stocks?
  • 4 days The App That Democratized Trading Is Now Worth $5B
  • 4 days Super-Cycles: Why Gold Is Set For A Breakout
  • 4 days U.S. Sanctions Russia For Election Meddling And Cyberattacks
What Killed Toys ‘R’ Us?

What Killed Toys ‘R’ Us?

In another blow for America’s…

Consumer Confidence Fails To Boost Retail Sales

Consumer Confidence Fails To Boost Retail Sales

Consumer confidence measured by market…

Trump's Trade War Nears Boiling Point

Trump's Trade War Nears Boiling Point

Trump’s trade war appears to…

Surf City

Surf City

Surf City is 60-year-old retired Information Technology Executive and Software start-up Entrepreneur living near the beach in California. He has been an active investor and…

More Info

XAU/Gold Ratio: The Deep Dive

Still waiting patiently for another possible nibble at some Miner positions. In the meantime, what is the XAU:Gold ratio and why is it important?

The Ratio clearly shows you that If you are going to invest or trade Gold/Silver Mining stocks you had best have some kind of time horizon to harvest profits. Why? The Ratio peaked in favor of the XAU all the way back in 1983. Yes the miners have underperformed Gold as a long term investment over that long period of time.

I am stating the obvious but this is because mining stocks are far more volatile than the metals. If you hold them too long your profits can disappear quickly. YCLs can be brutal to your portfolio and is shows you why my cycle work can be useful.

My first two charts don't go back to 1983 but these Weekly charts clearly show that the XAU has reversed this trend out of the December 2015 YCL. They also show that the Miners still have overhead resistance and thus more work to do.

XAU/Gold Weekly Chart 1

XAU/Gold Weekly Chart 2

My last chart provides a closer Daily look at the nearer term action since Dec 2015. It also shows why taking profits near Yearly Cycle peaks is worth considering. That is what we aim to do at Surf City Cycles.... smile

XAU/Gold Daily Chart


Back to homepage

Leave a comment

Leave a comment

Sign Up For The Safehaven Newsletter