A few days ago, I asked whether anyone is aware of the relative proportion of silver companies among the components of the XAU and the HUI. In connection therewith, I received an e-mail from "Barry" who was kind enough to provide some handy links that enabled me to roughly calculate the relative weighings of Silver companies in the HUI and the XAU indices.
Based on my calculations, Silver companies comprise 10.54% of the HUI while only comprising 3.99% of the XAU. This is a surprise since the HUI is supposed to be unhedged gold stocks whereas the XAU is supposed to be the index of gold and silver stocks. Based on this calculation, it seems my suggestion a few days ago that the XAU broke its downtrend first partly because of the outperformance of the Silver stocks, doesn't seem to be correct.
My method of calculating that, was ofcourse, less than scientific since all of the silver companies in both indexes derive at least a portion of their revenues from other metals (for instance, in the case of PAAS, its revenues are about 50% from Silver; for HL, the percentage is even smaller), and some of the Gold companies in both indexes also have silver credits. In any case, I counted only those companies who bill themselves as primary silver producers as "silver companies" for purpose of this calculation.
As of: 11/30/06, the relative weighings were as follows:
HUI Components
GFI 13.69%
NEM 13.38%
FCX 10.13%
AEM 6.03%
HMY 5.81%
GG 5.70%
EGO 5.62%
HL 5.52%
AUY 5.39%
MDG 5.07%
GSS 5.04%
CDE 5.02%
GOLD 4.69%
IAG 4.51%
KGC 4.41%
XAU Components
ABX 20.05%
NEM 15.80%
GG 15.75%
AU 9.93%
FCX 9.31%
GFI 6.92%
HMY 5.16%
AEM 3.96%
KGC 3.22%
MDG 2.31%
BGO 1.86%
PAAS 1.46%
SSRI 1.42%
GOLD 1.18%
CDE 1.11%
RGLD 0.54%
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