Gold, US Dollar and Rates: A Correlated Story | Metals Mine

  • Gold, US Dollar and Rates: A Correlated Story

    From sunshineprofits.com

    Mining production? No. China's consumer demand? No. The main drivers of gold prices are, as I've repeated many times, the U.S. dollar and real interest rates. You don't believe it? You don't have to - just look at the charts below. The first one displays the greenback and the dollar-denominated price of gold. Because other series start much later, I used here the Trade Weighted U.S. Dollar Index against major currencies that circulate widely outside the country of issuance. Although the correlation is not perfect, the inverse relationship is quite strong and bull and bear markets in gold coincide with the bear and ... (full story)

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NewtonsCash
Sep 24, 2020 4:13pm
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Quoting umbrella man
{quote} Yeah right! The exact same thing was said after 2008. If you bought any US index from 2009, it beats gold by a lot. You should understand, at best gold preserve and protect some of your wealth value against inflation. It’s not an investment. I know people just had gold in the last 10 years and they are not happy when they look back and see they missed ten years of expansion opportunity in equity, etc. It’s good to have some gold as a hedge but not more than 5 to 10% of your net worth/portfolio.
Ok, if you subdivided Gold, Silver and Bitcoin equally.... then teleport back to 2009 (as you suggest),
then buy say $10,000 of each asset .. Now do the math ?

Nuance is important in market trading n'est pas mon ami ?
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umbrella man
Sep 23, 2020 2:40pm
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Quoting NewtonsCash
Anyone without Gold, Silver or Bitcoin in the coming months and years is going to get inflated out of existence, Great article and really worth a read
Yeah right! The exact same thing was said after 2008. If you bought any US index from 2009, it beats gold by a lot.

You should understand, at best gold preserve and protect some of your wealth value against inflation. It’s not an investment.

I know people just had gold in the last 10 years and they are not happy when they look back and see they missed ten years of expansion opportunity in equity, etc.

It’s good to have some gold as a hedge but not more than 5 to 10% of your net worth/portfolio.
Reply
NewtonsCash
Sep 23, 2020 12:56pm
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Anyone without Gold, Silver or Bitcoin in the coming months and years is going to get inflated out of existence, Great article and really worth a read
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Trader#3E1E
Sep 23, 2020 1:53pm
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New wave of coronavirus, US elections tension with China are bound to push gold and yen up!
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