Loading ...Yardeni (+gold yearly rate of change)
I name that should be hard to forget… yet it took me a few days to remember! The data is priceless in their free pdf… so nice of them!
Anyways… some people like to show this chart and say.. hey.. why did gold go down in 2011-16 while total assets of CB kept climbing up… then using that reasoning to dismiss the link between monetary imbalances and gold… treating it like a simple commodity.
Like with my research with silver and its reaction to inflation rate (and not total inflation)…now apply this to rate of change for balance sheets vs gold
Edit: adding yearly rate of change for gold.
This oscillation fits pretty well with gold’s price action… highs in 2011 and 2016 match… so do lows of 2013 and 2015 and 2018.
So rate of change seems to impact more price action in gold than cumulative values. Think of it as an oscillating indicator you would plug on a chart!
Now ponder this… What will this look like in 2020? If we’d to get 10-20% rate of change.. then that would add 2-4 TRILLION more assets on those central bank balance sheets.
Looks like a GREAT TIME to buy gold, what do you think?
Source : https://www.yardeni.com/pub/peacockfedecbassets.pdf
Thanks.
So he thinks as well.
Can you access charts of Swaps. CDO etc. of these derivative??
https://goldswitzerland.com/i-have-stood-on-a-soapbox-for-20-years-to-explain-the-virtues-of-gold/
I’ll check Bikoo. Looks like current gold era is a condensed version of 2001-2008.. where rate drops was enough to drive gold price… but now we need QE… lots of it.. like 2009-2011. I think thats why we arent sure which analog to follow… because the gold era that started in 2018 is a new beast.. which exponentially consumes monetary imbalances. Thats why rate to zero barely moved gold. Its just not enough. Everything (liquidity) is still too tight… and why silver wont budge. Just insane.
Yes that’s the POINT.
It is not enough there can never be enough until the debt is cleared either by liquidation and payback or by default
There can Be No “Inflation” of the kind you are asking for ..ever …until the debt is cleared
Please read some of plungers PBC work to see what I mean…his latest will be up this evening
He is a market historian…read his bio. I believe you are barking up the wrong tree Patrick
The Inflation tree is dead …it cant grow
I have suspicions however that Gold is one of the better assets in a Deflation …where cash is king
I’ll check him out. But inflation for me is cost of living.. not necessarily a rise in commodity prices.
Great read. Now a question of timing… and not get whipsawed out of a long postion. The swap and cdo.. are you talking about the ones on CB balance sheets?
Also noticing gold leads the CB balanve sheet rate of change… if no QE… gold could actually fall.
Patrick please uses medium size when posting multiple charts
thanks