![\"\"](\"https:\/\/goldtadise.com\/wp-content\/uploads\/2019\/11\/TRJEFFCRB-176.655-2.05-GoldTent-Google-Chrome_2.jpg\")
<\/a><\/p>\nNext is to see how this can lead, and give me consumable insight on the precious metals.<\/p>\n
So clearly, until the CRB goes back above it’s 12 month moving average, and remains there long enough to have start skewing upwards… it’s has downward trend.<\/p>\n However, it’s direct implications on the price of gold and silver are not once what they were.<\/p>\n I can’t remember the name of this actual theory (some thing I read from Peter Brandt) , that the true macro market movers are sometimes only understood once they have actually played out… and then hind sight kicks in… until then.. we are using our spy goggles and being true Sherlock Holmes detectives…<\/p>\n Ahh… so much fun!<\/p>\n Edit:\u00a0 To better understand what the CRB is… adding CRB compositon. Inception date was 1994, so it explains why I don’t have data before.<\/p>\n https:\/\/www.refinitiv.com\/content\/dam\/marketing\/en_us\/documents\/fact-sheets\/cc-crb-total-return-index-fact-sheet.pdf<\/a><\/p>\n and now look at it’s correlation to crude oil … were energy is 39% of it’s composition, while metals are only 20%<\/p>\n <\/p>\n Silver is only 1% of it’s composition while gold is 6%<\/p>\n Edit 2: Added for Red Label the HUI on top of CRB + correlation coefficient..<\/p>\n Edit 3: Added gold to crude oil ratio.<\/p>\n Nice discussion going on with this commodity index. When I see a chart.. some instincts I have is to see it’s long term correlations to instruments I’m looking at..\u00a0 Correlations change… often subtly.. but our reflexes are to resort to … Continue reading <\/a><\/p>\n<\/a><\/p>\n<\/a><\/p>\n<\/a><\/p>\n<\/a><\/p>\n<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"