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.

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….

By Surf City

https://surfcity.co/

Everything about Cycle Investing

© 2017 Surf City - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.