Loading ...BGMI to Gold ratio 1940 to 2014
It appears ratio bottom in 2016. However currently it is still lower than 2014 from 0.56 to 0.36.
The only bull run in history of this ratio was in mid 1960 when gold price was fixed and ran to 7 to 8 level.
For some reason BGMI has been under performing gold since 1966. Mean reversion is 2.0 to 3.0.
With full employment now what economic condition needs to exist for this ratio to mimic the 1960?
If gold moves higher, will miners over perform gold????
Hey Bikoo, sorry for the delay in that chart. I was still trying to build out some ideas on the current chart but I did post some quick versions of this a while back. Everything is actually tied to London gold pool in 1968 as far as I can tell. I will try and finish current chart quickly.
https://goldtadise.com/?p=380125
Thanks.
Sorry, should have said when I get home from work.
Yes I like to see and in record what happen in 1920- 1933 to the ratio when gold was lifeted from 20.67 to 35.
I think the two largest gold stocks started performing well after 1929 and kept making higher highs. The bulk of the sector started to really run in 1931.
The BGMI only goes back to 1939. I do have data for another index but I didn’t note any big moves, historically, in the ratio.
The strong performance in gold stocks in the 1960s and a few years before 1933-1934 were signals that the Gold price would be lifted, eventually.