A ratio of the gold price to the XAU gold stock index of greater than 4 is traditionally considered a buy signal for gold stocks, with 5 a strong buy. Today the ratio is an unheard-of (to my knowledge) 10.65.
Are gold stocks a screaming buy or could this mean that gold has much further to fall? Mining stocks and other metals are down from 50% to 80%, so gold bullion stands alone with roughly a 30% decline. It is money, so it should fall less than other assets in deflation, but these ratios may be a bit extreme.
I considered GDX calls today as a short-term trade but thought better of it. This deflation is powerful stuff, and I want to stay out of its way for now.