xzorro Posted December 24, 2006 Report Share Posted December 24, 2006 Q: How representative is the XAU for PM stocks ? Frequently the XAU (and also HUI) Index is used as yardstick for the PM stocks.The question is, how representative is this index for the various PM stocks. The XAU Index is a capitalization-weighted index composed of 16 companies involved in the gold and silver mining industry. XAU was set to an initial value of 100 in January 1979; options commenced trading on December 19, 1983. XAU Composition/ weighting: XAU Composition/ Weigting- 16 comp's Here we have listed the charts of the XAU and 3 Large PM Stocks (NEM, AU and GG) and 4 MidCap PM stocks (AEM, AUY, AZK, EGO). Visually the XAU over the last year most closely resembles of GG and to lesser extent NEM and AU. NEM and AU seem to be in a downtrend (with lower Highs and lower Lows over the last year). It is true that the up/down turning points for the XAU also mark fairly well the up/ down turning points for the MidCaps. AEM, AUY and AZK appear to be in uptrend (higher Highs, higher Lows). Link to comment Share on other sites More sharing options...
xzorro Posted December 24, 2006 Author Report Share Posted December 24, 2006 Well, maybe this should have been better in the December thread... Excuse me... Link to comment Share on other sites More sharing options...
Whadda I Do Whadda I Do Posted December 26, 2006 Report Share Posted December 26, 2006 The XAU is weighted with miners that hedge their production. (Some HUI miners hedge also but for a short period of time) Both indexes list GG and GFI. It's all so convoluted. Better off following the spot prices and US$ as indicators. (click on the comparison chart to enlarge) Link to comment Share on other sites More sharing options...
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