I mentioned on Mark’s post on the HUI that gold is well down today (Tuesday 21 June) but silver miner Fresnillo (I own a little, listed in London) is only very slightly down. Actually it closed at 1218 – and its high from this bull market is 1233 on a closing basis, so it is only 1.3% below its recent closing high.

Now partly it might be because the close in London is before the gold close in NYC and there was more downside to gold in NY after London closed.

All the same, it is not showing much leverage to gold on the downside! i don’t know if this is really significant but Fresnillo has been outperforming gold lately rather a lot.

fresnillo to gold still climbing

It makes me wish I owned no gold and all Fresnillo (well maybe Spock’s Rocks but a nearly doubling in the FRES:GOLD ratio is a lot

Now for seconds, since it is midsummer’s day and I have just finished a delicious late dinner/supper, I decided to take a look at Fresnillo:Randgold ratio since they are two majors both listed in London, for all you Brits out there. I did not know what result I would get. In fact, the ratio bottomed in February 2016 just after the gold and silver markets turned up:

fresnillo to randgold ratio fresl rrsl

Going to a longer period eight years to see what shape the ratio took and strangely it looks almost exactly like the spot gold chart!

fresnillo randgold ratio looks like golds spot rrs

I don’t know if this signifies anything but it seems that Fresnillo is pretty sensitive to the gold price!

Randgold itself is not much leveraged to gold (Randgold US listing in USD and USD gold):

randgold to gold ratio in us dollars not much leveraged