It is always good to get different perspectives on the markets. Bruce Edwards has worked in the refining game for many years, currently with
Sabin Metal Corp. As a way of keeping in touch with his former and current clients he has a web site where he posts his
Chart Mysticism on the markets.
He has a chart at the bottom of the page called Gold Shares and Industry Ranking. Bruce explains it thus: "The chart is an index of Gold Mining Company Shares (upper line) and a 10 week moving average of their relative performance when compared with 98 other Dow Jones Industry Groups. I have been keeping this chart since 1993 and it has been excellent predictor of the future relative performance of gold and gold mining company shares. When the lower line is at the high end of its range everyone loves mining company shares and gold. When it is at the lower end of its range everyone hates the group. A long term investor should sell when the lower line is high and buy when it is low."