the gold index of the tsx (XGD) has just again approached its peek that occured in early May 06.

During that time the bank of Canada exchange rate for the CDN$ vs the US$ has gone from .9099 (May 11/06)  to .9956 (Jan 28/08) a gain of .0857/.9099 = 9.42%.

<>In that same time the price of Gold (from kitco) has gone from 719 (May 11/06)  to 923 (Jan 28/08) a gain of 204/719 = 28.37%.

Silver 14.49 to 16.49 .. a gain of 2.00/14.49 13.8%

From this we can tell ... the silver is lagging gold and the xgd is lagging  both the silver and gold considerably.

This is important since I would contend that the juniors will not pop-up until the increase in XGD approaches much more closely the rate of gain in gold which is currently 0% increase in the old peak.

Yes the Canadian dollar accounts for 9% affecting the gold price, but we have a long way to go.

Buy XGD as it moves up move your gain to juniors!

Orgy