Two New Must See NIA Charts

NIA just published a new interactive chart showing the median price/book value ratio of producing gold mining stocks vs. agriculture stocks, bank stocks, biotech stocks, home builder stocks, Internet stocks, and software stocks. For the first time in 15 years, gold mining stocks have the lowest median price/book ratio, with a current median price/book ratio for the gold mining industry of 0.79.

Click here to see our first new chart.

 

NIA has also just published a sister chart to the one above where we divided the median price/book ratio of each industry, into the median price/book ratio of gold mining stocks. The average ratio in this chart is now up to 3.41, which means the median price/book value of agriculture stocks, bank stocks, biotech stocks, home builder stocks, Internet stocks, and software stocks, averaged together is 3.41X higher than the median price/book ratio of gold mining stocks.

The last time this average ratio was this high, was back in March 2000 when it reached 3.7. Afterwards, it fell to a low in May 2002 of 0.57, at which time gold mining stocks had the highest median price/book of 4.15. This chart illustrates how gold mining stocks are the most undervalued they have been since the dot-com bubble vs. the rest of the market being the most overvalued it has been since the dot-com bubble.

Click here to see our second new chart.