From Seeking Alpha:
One reliable indicator that I have followed over the years to time the purchase of gold stocks is the K-Ratio.
At the present time, the K-Ratio is giving a strongly bullish signal. The K-Ratio is computed by dividing the value of Barron's Gold Mining Index (GMI) by the Handy & Harmon gold price. Using data from the latest issue of Barron's, the K-Ratio is now at .90 and flashing a very strong buy signal.
The last extremely bullish reading was registered in late October of last year when the K-Ratio recorded an all time low reading.
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