GoodFellas Big Board Catalyst and Chart Plays

[$tockfather]

Today The XAU/Gold Ratio Is At A Historic Low Of 0.07.

Any time the ratio reached 0.20 or below, gold stocks were undervalued in relation to gold, and investors who bought at those inflection points made a profit. Conversely, once the ratio reached 0.34 or above, stocks were overvalued and due for a pullback.

For 23 years, from its inception through 2007, the XAU/gold ratio provided fairly reliable feedback for investors.

Now let's add the rest of the data.



To fully appreciate what this means, look at these former lows for comparison:

It's lower than the 2008 gold stock selloff;
It's lower than the "nuclear winter" of the mid-'90s;
It's lower than the very beginning of the gold bull market in 2001.

Right now, gold stocks are like a rubber band that's being stretched to an extreme. As all rubber bands do, it will snap back. And not just that; based on how extreme the undervaluation has become, they're bound to be among the most profitable investments of this generation.


Huge upside potential if Gold continues moving higher...JMHO


(Gold/mining stocks I like)

AUY - Yamana Gold Inc.
IAG - IAMGOLD Corp.
EGO - Eldorado Gold Corp.
RGLD - Royal Gold, Inc.
KGC - Kinross Gold Corp.
NGD - New Gold Inc.
ANV - Allied Nevada Gold Corp.
GSS - Golden Star Resources Ltd.
HMY - Harmony Gold Mining Company Ltd.
AU - Anglogold Ashanti Ltd.
NEM - Newmont Mining Corp.
ABX - Barrick Gold Corp.
BVN - Compania de Minas Buenaventura
GFI - Gold Fields Ltd.
GOLD - Randgold Resources Ltd.
AEM - Agnico-Eagle Mines Ltd.
GG - Goldcorp Inc.