copied from this research company, regarding gold mining shares and bullion, price of gold in the ground, etc.

Gold Shares Update

EWF Research 12/19/2011

Note that the Philadelphia Gold and Silver Index is an index of sixteen precious metal mining companies that is traded on the Philadelphia Stock Exchange. The index is represented by the symbol "XAU",

"Regression Analysis also indicates that the XAU is trading at extreme lows compared to gold bullion. Based on the current price of bullion, the regression predicts the XAU should trade at $211.78. The actual value of the XAU ($179) is 15.5% below the regression’s predicted value. The regression indicates that the XAU’s undervaluation is extreme." and further

"The market is currently paying $331.1 per ounce of gold in the ground. Based on how the market has valued 2P reserves in the past, regression analysis predicts the market will pay $383.49 per ounce in the ground. The actual MC/2P Multiple is 13.66% below the predicted MC/2P Multiple."

"The gold mining shares haven’t been this undervalued compared to gold bullion since the crisis of 2008. The Gold-to-XAU ratio and Gold-to-HUI ratio have been at extreme levels since May."