HUI Gold Index

The NYSE Arca Gold BUGS Index is a modified equal dollar weighted index of companies involved in gold mining. BUGS stands for Basket of Unhedged Gold Stocks. It is also referred to by its ticker symbol "HUI". The HUI Index and Philadelphia Gold and Silver Index (XAU) are the two most watched gold indices on the market. The main difference between them is that the HUI Index takes into account only gold mining stocks whereas the XAU Index includes both gold and silver producers.[1] The Gold BUGS Index was designed to provide significant exposure to near term movements in gold prices by including companies that do not hedge their gold production beyond 1.5 years. The HUI Index was developed with a base value of 200.00 as of March 15, 1996. The AMEX Gold BUGS Index currently consists of 15 of the largest and most widely held public gold production companies.[2] Since bottoming in late 2000, HUI went on to be the top-performing US stock sector of the decade, rising by about 1600%.[3]

Index components

NYSE Arca Gold BUGS Index 1996–2012
Company name Symbol Weighting[nb 1]
Goldcorp Inc NYSE: GG 16.59%
Barrick Gold Corp NYSE: ABX 11.87%
Alamos Gold Inc NYSE: AGI 9.49%
Newmont Mining Corp NYSE: NEM 9.27%
AngloGold Ashanti Ltd NYSE: AU 5.70%
Gold Fields Ltd NYSE: GFI 5.66%
Randgold Resources Ltd NASDAQ: GOLD 5.34%
Sibanye Gold Ltd NYSE: SBGL 5.23%
New Gold Inc NYSE MKT: NGD 5.18%
Kinross Gold Corp NYSE: KGC 5.06%
Agnico Eagle Mines Ltd NYSE: AEM 4.91%
Eldorado Gold Corp NYSE: EGO 4.81%
Cia de Minas Buenaventura SAA NYSE: BVN 4.10%
Harmony Gold Mining Co Ltd NYSE: HMY 3.40%
Yamana Gold Inc NYSE: AUY 3.40%
  1. ↑ The weightings above are updated infrequently. See NYSE Arca Gold BUGS Index Closing Index Composition for the current composition weighting.

Adjustments are made quarterly after the close of trading on the third Friday of March, June, September, and December so that each component stock represents its assigned weight in the index.

HUI-gold ratio

The HUI-gold ratio is an expression which compares the relative quantities of the Amex Gold BUGS Index and the price of gold. The ratio is calculated by dividing the value of the Amex Gold BUGS Index by the price of gold.

Investors use the HUI-gold ratio to illustrate the ever-shifting relative strength of the gold stocks versus gold.[4]

See also

References

  1. ↑ Przemyslaw Radomski, CFA. "Dictionary: HUI Index". Sunshine Profits. Retrieved 2013-01-16.
  2. ↑ NYSE Euronext, Amex Gold BUGS Index - HUI http://www.amex.com/othProd/prodInf/OpPiIndMain.jsp?Product_Symbol=HUI
  3. ↑ Why HUI? http://www.gold-eagle.com/editorials_08/hunn062911.html
  4. ↑ Zeal, HUI/Gold Ratio Trends http://www.zealllc.com/2007/hgrtrend.htm

External links

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