He sees no end to the strong gold/weak miners set up. Therefore, it must be ready to change soon.

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Finally, one area of concern is that of gold shares. We begin by noting that we have been clearly involved in gold via gold futures and/or GLD, avoiding the vagaries of owning gold mining stocks all along the way [Ed. Note: When we have mentioned gold mining shares we have always… and shall always… note only the very best and the very largest of the miners: the Newmonts; the Barricks; the Coeur d’Alene’s and even the ASA’s; we shall never, and have never, discussed the so-called “juniors” with anything other than disdain and/or concern, seeing them always as pits into which one tosses one’s money 99 times out of a hundred… and yes, we do know that there have been success stories along the way amongst the “juniors” but we wish not to hear from any out there touting them. We trust we are clear.]. Friday, as gold closed off its highs but essentially unchanged, gold shares fell sharply. Our old friend, John Brimelow, notes that “The HUI and XAU closed…only slightly above their lows [on Friday], down 3.3% and 2.61%” respectively. Those who’ve tried to own gold shares rather than gold futures, gold bullion or the gold ETFs have found themselves bullish of gold and losing money on a consistent, relentless basis. We see no reason to believe that this well entrenched trend is prepared to end any time soon.