| In the past, there have been periods when the correlation between gold bullion and the gold equity market has been high. Yet, at the turn of the decade, correlation of sorts fell away quite remarkably.
The price of physical gold continued to perform robustly for a period before softening, while gold-related equity prices came under significant pressure much earlier and tailed away rapidly, dragging the gold-mining index back to levels last seen at the turn of the century when bullion was $350 an ounce. Gold is often perceived as an inflation hedge, which perversely is the environment in which gold equities struggle...............................................Full Article: Source
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