Comments: On the left are the forward and current Price to Earnings Ratios of each of the HUI and XAU Components, from most expensive to least (according to Fwd P/Es). A forward P/E ratio compares the current price with the earnings estimates for the next 4 quarters.
It's interesting to note that the precious metal miners generally have significantly higher P/E ratios than base metal miners. Gold and Silver Miner P/Es are generally quite high, though not yet outrageously so. Continued earnings growth will be critical to justify these lofty valuations.
For comparison, internet favorite GOOG has a forward P/E of 28.38 and troubled car maker GM has a forward P/E of 5.93.
(Data according to Yahoo Finance, during the trading day of August 25, 2006.)
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