13.01.2009 - Time to buy market vectors gold miners ETF?
From Seekingalpha.com: Food for thought: I was reading an article by John Hussman from 2007 detailing the Gold/XAU ratio. Since 1974, when the ratio is above 5, the XAU has followed with annualized gains of 89.6%. When the ratio is above 5 and the economy is weak as signaled by an ISM Purchasing Managers Index below 50 (indicating a contracting manufacturing sector), gold miner shares have appreciated 125.6%. The XAU index can be followed somewhat using an ETF - GDX. Otherwise, one could purchase each individual security in the XAU index..... Full Article: Source
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