James Turk – The Single Most Important Chart For All Of 2013

kingworldnews.com / March 4, 2013
Today James Turk sent King World News what he believes is the single most important chart for all of 2013.  Turk also spoke with KWN about the enormous implications of this chart and what it means for investors around the world.  Here is what Turk had to say in this extraordinary and exclusive interview:  “The gold mining shares have never been this cheap, Eric.  The chart below of the XAU Index goes back to 1983, when the XAU Index was first constructed.  But note that this chart illustrates prices of the XAU Index over these 3-decades in terms of gold and not the way it is normally presented, which of course is in US dollars.”
James Turk continues:
“There are a few reasons for doing this.  First, and probably most importantly, this chart shows the relative performance of gold measured against the mining shares in the XAU Index.  Since the collapse of Bre-X back in 1997, the trend has been down.  It means that for 16 years gold bullion has been outperforming the gold mining shares, and of late is doing it dramatically.

Of course some individual shares have done better than bullion, but these instances are based on circumstances unique to the company, such as new discoveries or other factors.  But this chart shows that the bulk of the gold mining shares have been underperforming, which is another reason I use the XAU Index.  The XAU Index comprises the share price of 30 mining companies….
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