Newmont and Silver Wheaton, for gold and silver, respectively, have tended to lead breakouts in the actual metals. Both these companies are breaking out to new bull-market highs, above the March 2008 highs. This is significant.

Next to follow will be the entire HUI. It is nearly there. I give this a few more weeks-- perhaps after a pullback in gold to retest the former highs around $1,225.

Then, we will see the lagging CDNX composite start to pull up the slack. Remember, it is not just Tyhee lagging here, the entire "non-reserve exploration-only" category has not yet recovered from the 2008 crash. I anticipate an accelerated trajectory for the entire sector, as illustrated in my orange lines-- a similar trajectory as it experienced on the way down in 2008. This must happen if gold and silver continue to new highs. There is only so much discrepancy between majors and juniors that can be allowed to exist before arbitrageurs come in and close that gap.

That is when factors such as our PFS will bring Tyhee's valuation back in line with the rest of the gold mining sector, as evidenced by the HUI:TDC ratio. The long-term average is somewhere in the 600-1,200 shares of TDC per share in the HUI. Currently we stand at 2,663. So, Tyhee should and will go up 2 - 4X from these levels to match that long-term ratio. If you believe that gold in the ground will never be valued the same compared to gold being produced as it once was, you should probably be looking to sell and buying the GDX. I, for one, do not think "this time is different," and am still looking for where the value is.

Hysteria