In his latest article below, the wise Professor Lewis makes a couple of good observations below...

Regards - VHF

"For the gold shares though, they never discounted $1000 gold to begin with. Thus, one wouldn't expect much more near-term downside in them. We can also see this in the XAU/Gold ratio, which is currently 0.192, close to its recent nadir back in August.

As you can see from the chart below, selling gold shares with this ratio below 0.20 over the past 25 years has been a big mistake. Buying gold shares when this ratio was below 0.20, however, has tended to be highly profitable."