HUI / XAU ratio

Hedgers are punished in this great global gold bull market (GGGBM)

Since 2001 the HUI index outperformed the XAU about 200%. that is, if you shorted the XAU and Bought the HUI in 2001, you are up 200% on your money.
Both indices share some companies however the difference between the HUI and the XAU is the fact that the XAU components are usually more aggressively hedgers.
As the Bull market continues I expect this trend to continue and aggressive hedgers will under perform badly.


Click on the chart below to enlarge: