Here’s a chart of the popular mining ETF, GDX, relative to the spot gold price:

Source: stockcharts.com

A long-term chart of XAU index to gold shows the lowest value in 20 years except for the panic low in 2008:

Source: stockcharts.com via http://oilandgas-investments.com

Since last summer, this ratio has been bouncing around in a range not seen since the depths of the last bear market in late 2008 to early 2009.

Our own gold producer index is still slightly lower than before that crash, when gold topped out at $1000.

As a result of high metal prices and strong cash flows, we are now showing 66 miners that are actually paying dividends, a rarity in this industry:

http://miningalmanac.com/stock-lists/dividend-mining-companies

Just a quick post on this sunny Friday afternoon in August…

Check out this divergence over the last three months between our gold producers index and platinum group index, as the gold price has risen to meet platinum. If this spread returns to more normal levels through a rise in platinum, we could see that index catch up.

Tip: compare any group of our mining stock indices here.

The increasing tendency for gold and silver to behave like safe-haven currencies instead of cyclical commodities has been a godsend for miners lately. On average, mining stocks have a higher correlation with broad stock indices like the S&P500 and FTSE than with metals prices, but when enthusiasm and demand for precious metals is at a fever pitch, as in the late 1970s to 1980, it seems that miners begin to distinguish themselves. I should note that the opposite is seems to be true at the other extreme – witness the 60% decline of the XAU Gold & Silver index from 1995-2000, while the S&P500 tripled.

Here’s a three-month view of our Base Metal Producer index vs. our Gold Producer index (you can play with more index comparisons here):

This month has not been kind to industrial resource stocks, since the broader commodity complex has been hit hard by traders anxious to unwind risk. For some perspective on how much unwinding has taken place, West Texas oil briefly traded under $80 this week, down from $114 this spring and $100 just three weeks ago:

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Dr. Copper is holding up a bit better, but is still down 14%:

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Not surprisingly, our Movers lists of best performing stocks over the past month are now dominated by precious metals companies. Here’s a snapshot, but you can see the whole list here and filter it by country or time frame:

Despite their general positive correlation with broad indices, the mining sector has held up very well despite a dismal couple of weeks for stocks in general. Gold approaching $1700 might have something to do with it, but even such industrial mineral sectors like base metals, rare earths and uranium have been stronger than the Dow, DAX and FTSE.dex, vs. the S&P500 over the last month.

GDX, the gold miners’ ETF, is up 7%, while the S&P is down 6%, a 13% outperformance for the miners:

Even downtrodden uranium stocks have caught a bid this summer:

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SITE TIP: Peruse & compare our mineral sub-sector indices here, and see which have been the strongest.

The entire minerals sector has performed very well in July, with precious metals stocks finally catching a bid, but industrial materials stocks have been the best performers of the year.

Here’s a chart of some of the strongest indices since the 2008 crash (pink: rare earths; purple: heavy minerals; blue: base metal producers; green: coal):

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Site tip: To compare indices in a single chart like this, go to http://miningalmanac.com/indices and select “compare” or just go to http://miningalmanac.com/indices/compare.

You can also compare any individual stock to the indices (or the gold price) by going to its pages and clicking on the “charts” tab:

Gold has marched steadily upwards for the last 12 months, but mining stock investors have had a more interesting ride, thrilling at first, but lately frustrating. Juniors all did spectacularly well during the summer and fall of 2010, but this year the stocks have consolidated their gains or drifted lower as gold has continued higher.

However, as gold approached the 1600 mark, miners and juniors alike have finally gotten a lift. Here is a chart of the gold price (blue), gold explorers (pink) and gold producers (green) for 2011:

It is too early to call a breakout of the downward trend, but I’ll be watching for one in the coming days. It is encouraging that the miners have continued this three week uptrend over the last few trading sessions as the broader equity indices have softened. Perhaps we are setting up for another great run once the summer doldrums are over.

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Site tip: You can compare any company to any of our indices or the gold price on the company’s charts page. Try it out with Newmont. Just select the indices you want to add to the chart from the list on the right.

Bargain hunters should be thrilled, since there are some real values appearing in the market again. Many small stocks have retraced their entire 2010 rally, even as gold hovers over $1500 and silver holds $35. With the dollar still in the doldrums, commodity prices levitating, and interest rates near zero, something has to give.

A bit of fear has crept into the markets as a whole since May, but resource equities have been hit particularly hard, and the losses have been magnified for juniors and explorers.

Our gold explorers index, for instance, is down over 20% in 2011:

Site Tip: The best place to see which companies have become cheap is the Editor’s Picks section.
The lists refresh daily, taking into account the latest stock and metal prices.