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What’s Kitco reach got to do with Gold and XAU? by John Lee 05/09/2007 With Kitco.com indisputably being the public’s number one choice for precious metals price quotes and information, we set out to investigate any lead/lag relationship between Kitco’s daily reach and the price of Gold and XAU. Before proceeding though, how does one establish Kitco’s reach, and what is reach anyway? Alexa.com, a website information gathering service defines a webpage’s reach as “the percentage of all internet users who visit a given site". With that in mind, it comes as no surprise that the web’s three most popular websites in terms of reach are yahoo.com, msn.com and google.com respectively. Kitco meanwhile ranks 1st among its precious metals peers, and overall is among the top 0.01% of websites overall in terms of reach. With Kitco’s sector supremacy now established, below are the 5 year charts for Kitco’s daily reach, the XAU gold bug stock index, and the price of gold.    You can see that the direct correlation between Kitco’s reach and the XAU is uncanny. Kitco’s reach first peaked in January 2004 (green circle) when the XAU peaked at 140 at the exact same time. Kitco’s reach subsequently made its second and higher peak in May 2006 (red circle) when the XAU also peaked at 170 at the exact same time. The logic beyond this seemingly unfathomable relationship is quite simple. The bull climbs over a perennial wall of worries until the universal euphoria state is reached and that’s when the peak is established. What’s most interesting is that at present time, while Kitco’s traffic is still massive, its reach is near the 5 year low indicating we are near the bottom of public interest for both gold and the XAU. Given that gold is only $30 from its 26 year peak this tells us two things:
All in all, the above stats again reaffirmed our belief that the rest of 2007 will be anything but dull for gold investors.
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