Five Charts Showing Why Gold Stocks Have Never Been This Cheap!

Cejay Kim August 26, 2015 Category: Research

1.

The divergence between commodities and the S&P 500 is at an all-time high. The recent flash crash of the S&P 500 suggests that we are nearing a closing of the gap.

2.

We continue to update this chart and wonder just how much longer this bear can last. The TSX Venture has now almost hit the record low it achieved during the 2008-2009 Financial Crisis.

3.

The last time the HUI was this low was when gold prices were ~$250 per ounce. When charted against the price of gold, gold stocks have never been this low, period.

4.

In just a couple of months the current gold bear market will become the longest since the BGMI began. The current drop has surpassed both the bear markets of 1980-1982 and the 2008 Financial Crisis. (source: TheDailyGold.com)

5.

There is an unprecedented divergence when comparing the price of the Gold/Silver Sector Index (XAU) to the S&P 500.