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Gold : CRB Ratio Chart
For Bikoo
Thanks for asking .
This is pretty incredible
How to analyse this ?
from 70 to 80 in a period of huge Inflation , Gold vs Commodities did very well
Then for a long time they traded together
Now since the GFC to today Gold vs Commodities has done incredibly well. Arguably during a period of great Deflation ( Mitigated by Unprecedented Central Bank fighting against it )
LOG CHART
Thanks again Sir Bikoo.
This chart is extremely revealing .
I think it shows the CBs are failing in their fight against deflation !
It also PROVES Gold is both an Inflation and a Deflation Hedge
Wonderful Thanks FUly!!
This is what I suspected. Watch my post on this subject.
Read my post Bikoo’s finest under Yields and Gold on right sidebar
https://goldtadise.com/?p=438587
I am going to post again. Gold/CRB is in multi decade bull since 2006 break out.
Bob Hoye makes the case for “Go Exploration ROCKS”.
Next amazing thing is still hidden.
If you add Silver to gold ratio behind price you will notice that in 1970 to 1980 SGR went up along with GC ratio. But since 2008 BO of GC SGR has been in diverge big time. WHY? It is lke ball pushed under water for so long.
Once SGR breaks to upside it has lot to catch up with GC ratio. Means “Go Rocks”
I question why Silver has to rise in this environment
If Gold is rising because of a sovereign Debt Crisis and or Banking Crisis
Why would silver rise also
Countries have Gold Reserves but not Silver Reserves
Who considers silver as a monetary metal anymore ?
Great question. Silver price represents speculation in the PM sector- hot plays (in Bob Hoye;s term)
Your question made me go back and reread this post I had forgotten.
The current situation in silver and SGR fits well with his theory.
Below is post from TSI from Feb 2016 when current gold bull began. It has been 2.5 years since than and silver has under performed gold during these years. The current gold bull run gold price rose from 1045 to 1350. Rest is history.
TSI:
“since the birth of the current monetary system the early stages of gold-silver bull markets have always been characterised by relative WEAKNESS in silver.”…
Feb 2016: “In summary, history tells us to expect continuing weakness in silver relative to gold during the first two years of the next precious-metals bull market (which has possibly just begun),..”
Bingo!!
The market just experienced his historical theory. Gold bull began in Feb 2016 Silver continued to under perform for 2.5 years. Now silver is showing sign of strength after gold broke The Manigot line at 1350?? Walla!
https://tsi-blog.com/2016/02/gold-versus-silver-during-bull-markets/