No, not always together. IMO, for the real leg in the PMs to get going, the inflation theme will assert itself, bonds will crash and silver will take the lead. Still in tge early stages, but when velocity of money arrives, correlations will change.
I’m inclined to agree with Dave on this. The whole theme supporting a serious gold bull market, i.e. the big one that we’ve all been waiting for, is a revisiting of ’70 style inflation with rising metal prices and falling bond prices, resulting in rising interest rates. Most people don’t think this can happen due to a normalcy bias but the fundamentals of economic law will demand it at some point.
No, not always together. IMO, for the real leg in the PMs to get going, the inflation theme will assert itself, bonds will crash and silver will take the lead. Still in tge early stages, but when velocity of money arrives, correlations will change.
Seems like they are running inverse since early June. http://stockcharts.com/h-sc/ui?s=GLD&p=D&b=5&g=0&id=p77447439204
Yes a divergence which reverted today as TLT dropped significantly ….not on your chart.
I’m inclined to agree with Dave on this. The whole theme supporting a serious gold bull market, i.e. the big one that we’ve all been waiting for, is a revisiting of ’70 style inflation with rising metal prices and falling bond prices, resulting in rising interest rates. Most people don’t think this can happen due to a normalcy bias but the fundamentals of economic law will demand it at some point.