Loading ...What has the $XAU:$GOLD ratio got to do with the price of wheat?
Its a curious relationship, and somewhat baffling.
The Deutsche bank agricultural commodity index (DBA) tracks wheat, corn, soybeans, cotton, sugar, coffee, and cocoa.
$XAU:$GOLD – weekly line chart with DBA in green
“All commodities” Gold and silver are traded as commodities not monetary metals.
DBA has a nice looking for a short. It’s even been long term.
Unfortunately my relatives are farmers, so it’s also been painful for them.
‘trendline’
Thats an amazing co relation…
XAU:GOLD Down equals Gold Down equals Agricultural Products down.
ipso facto Gold = a commodity
Well, DBA is an ETN not an ETF … so its value depends in part on your confidence in the issuer to redeem its notes.
DB’s marriage to Commerzbank failed, and now its forming up a ‘bad bank’ perhaps.
Not that JJG has done much better, mind you. But there’s a connection between DB and 10 ft poles, last I heard.