This is a comparison of the Philly gold stock index ($XAU) and Gold. The ratio has been on a steady decline for years as gold has outperformed the gold mining companies. Remember, mining companies are businesses with their own unique set of risks and problems ranging from labor issues to having to deal with the darlings at the EPA and so much more. The solid black line is the 200 week moving average for this ratio and it has been falling for quite some time even as gold has rallied. Put another way, the doubting Thomas's are wrong to worry about weak gold mining shares as a tell on the future prospects for gold. I say keep buying the actual gold and stay away from the mining shares.