Loading ...REAL RATES
How can we use Stock charts to track “real” rates and their effect on The Gold Price
How about $TNX ( Ten year Yeild) Minus RINF ( Rate of Inflation ETF )
here is what you get
Sir Nightingale asked to see a chart like this…what does this show…everyone interested chime in
Here is how I read this chart
as Real Rates fall ( and go negative ) Bonds Rising in Value , Rates Dropping below the level of inflation…Gold Goes UP
Because Bond Yeilds Lose money to inflation so Gold is Good to hedge
and Vice versa
The co-relation has been solid ….until recently when the Real Rates have risin strongly BUT Gold after a brief drop has regained its footing and risen back ..and NOT dropped yet
Something has changed !!!
‘Something has changed !!!’ … well such is a sure thing BUT as for this TOPIC … I cannot see your statement in your chart. IMO – the relation is still INVERSE. And such (IMO) would mean that if you have a PO to double (as formerly posted) then $Au cannot else then DROP. But again … I am not into charting DEBT and interest related as IMO such (inventions) come from VIL-e mind.
Sir FGC … please enlight the forum with additional chart(s) and moreover to zoom in on the TIME-FRAME who call ‘until recently’. As for now I only see the inverse correlation. Show proof instead of instead of repeating a narrative which does not seems to hold-up.
the past shows an inverse correlation.
but as you say, that appears to be no longer the case.
perhaps because govts are insolvent now and their promises (bonds) are worthless?
‘the past shows an inverse correlation.’… and still seems to be the case.
Interesting…finally realizing that gov bonds are trash at this interest rate. I’m guessing rates will never rise fast enough to make up for the depreciation in buying power.
“rates will never rise fast enough to make up for the depreciation in buying power”
Not as long as central banks are out there buying sovereign bonds that nobody else is foolish enough to buy.
THEY ARE THE PROBLEM.