Loading ...What is Gold ?
Its a Commodity or its THE Financial Asset of Last Resort.
Some say its both…but sometimes one more than the other.
Lets look…does it follow the CRB ? ( The Longest standing Commodity Index …which is Energy heavy)
Sometimes Yes and Sometimes NO
Can the CRB ( Energy and some other Commodities) break down but Gold Hold up ?
Apparently YES.
So what is this chart saying…can we summize that since the start of 2017 Gold is acting as a Financial Asset !
Plunger recently posted an epic …complete with Kondratief Cycles at Rambus Chartology where he shows that historically Gold does best during DE Flation !
hmmmmmm
key is deflation in a debt-ridden economy
where can wealth be stored?–not in paper’ ie debt instruments, bec how will the debtors be able to earn enuf to pay off the debt
not in stocks bec of the deflation
gold
gold will do well if the deflation comes in an economy that is debt ridden
where will wealth be stored–in paper ie debt instruments?
how will the debors earn enuf to service the debt, much less pay it back
What a visual! Looking forward to following this Thank you
Thank you too Optional.
One thing I am learning was highlighted by Rambus tonight in his Wednesday Report
“There is something happening in the commodities complex that has been going on for awhile now that needs to be addressed tonight. A subtle change actually started earlier this year and has been gaining momentum especially in the energy sector. I know for a lot of you, with the weak US dollar, you are thinking, “how could commodities be declining,” which goes against everything you have learned about how the markets are supposed to work. If the markets always behaved like everyone thinks they should then there would be no markets, because everyone can’t be right. That’s the nature of the beast we’re trying to tame.”
The take away is we cant take anything …even long term intermarket relationships for granted.
I just finished reading his piece and am looking forward to the weekend followup.
Another way of following this is the $GOLD:$CRB ratio chart, posted here:
https://goldtadise.com/?p=403102
It has just BT a inverse h&s neckline and is heading up.