Consistency
Alfa’s “JAWS” post was very intriguing https://goldtadise.com/?p=456446
I’m still trying to figure out why… and with my recent studies with inflation rate (cost of living).. and it’s impacts on gold price… that was the trigger for another piece of the puzzle.
How does oil react to inflation rate? Well… pretty damm good! Could actually be the cause of inflation rate… to a 50-90% effect.
Now, divergence is in progress.. as that correlation has dropped from the 90% upper band to 48%.
Is the importance of oil in inflation rate diminishing for real?
What will happen to the inflation rate when oil goes up. Repeat of 1970’s and 2000’s ? Oil prices going up seem to be the missing catalyst for a parabolic move in precious metals prices.
But since gold and silver are not making new lows… I’m suspecting they are pricing in inflation rate increases… which could be further helped by increasing oil prices.