Many are jaded with sentiment like this but came across an article under this title that contained a striking chart. It also seems timely given last week's volatility in US stocks. The chart posits that Gold relative to the S&P500 stocks ($SPX) has been in an analogous trend to the period 1996 - 2002 with a 97% correlation. This correlation - if imagined to continue - predicts Gold to rapidly gain ground against the $SPX. So this could happen through just a crash in $SPX (and gold going nowhere), but again, if we continue the analogy to 1996 - 2002, in the period following 2002 it was Gold that really took off in USD terms. https://thefelderreport.com/2018/02/08/gold-fireworks-on-the-horizon/ Black is current Gold:$SPX, Yellow is 1996 onward
Charts are fun but you can be sure regardless , Gold will go up and down . The more you are IN at a given purchase cause's the wonder if not desperation of a chart purchasing during your life time is income averaging and cause's less worry of Gold's circular value
What is the motive for 99.9999% of the people, I doubt it is to die with more gold than one's neighbor? That graph show 5 year historical value and 2 year projection of prices If that is correct, the message for people holding gold to be on the watch to sell.... than wait to buy in when it drops. Inst the goal to buy an ounce for $1x, sell at $2x, than wait to buy 2 ounces for $x, doubling the weight of gold. Unless one is hoarding for nuclear holocaust, that is the a different strategy.
After reading this bond fund guy's bio briefs, I thought his sentiment on Gold worth posting. Note he's no gold bug, bonds look to be his main field e.g mortgage backed securities, maths whiz, and he has described himself as "borderline autistic". There's a Youtube Vanity Fair interview uploaded Oct 2017 to get a feel for his wider views. Kitco News Wednesday April 11, 2018 Famed investor Jeffrey Gundlach remains optimistic that it is only a matter of time before the gold prices break their chains, which could push prices close to $1,500 an ounce. The CEO of Doubleline, also known as the “bond king,” is once again attracting the attention of gold investors as he sees the yellow metal at a critical juncture. “We see a massive base building in gold. Massive. It’s a four-year, five-year base in gold. If we break above this resistance line, one can expect gold to go up by, like, a $1,000” he said during the 2018 Mauldin Economics Strategic Investment Conference, according to recent recap from Steve Blumenthal, chief investment officer at CMG. His bullish comments have been highlighted at an opportune time as the gold market trades at the top of its well-established range, hitting a seven-week high. June gold futures last traded at $1,362.70 an ounce, up more than 1% on the day. In his presentation, Gundlach said that he recommends investors look at straddle trading strategies in the marketplace. “Because one way or the other this baby’s got to break in a big way,” he said. The most prominent factor behind Gundlach’s bullish gold outlook is a weaker U.S. dollar. In his presentation, he said that he sees the U.S. dollar continue to push lower in 2018. “When you get a lousy year in the dollar, like last year, it’s very typically followed up by another year that’s bad just after,” Gundlach said.
Turkey is getting out of the $U.S. and bringing its gold home. Shouldn't you be doing what the big boys are doing? _JLG. https://www.zerohedge.com/news/2018-04-20/turkey-will-repatriate-all-gold-us-attempt-ditch-dollar
Paper gold and silver have lost the last battle. Most of the gold bugs have withdrawn. Now concentrate on the war strategy!
Eygyptian billionaire has put half his net worth into gold amid market warnings May 2 2018 AFR Some big investors see warning signs ahead for markets but are holding their positions. Egyptian billionaire Naguib Sawiris is taking action: He's put half of his $US5.7 billion ($7.6 billion) net worth into gold. He said in an interview on Monday that he believes gold prices will rally further, reaching $US1800 an ounce from just above $US1300 now, while "overvalued" sharemarkets crash. "In the end you have China and they will not stop consuming," Sawiris said at his office in Cairo overlooking the Nile. "And people also tend to go to gold during crises and we are full of crises right now. Look at the Middle East and the rest of the world and Mr Trump doesn't help." (Heading is hyperlinked for full article)
Hmmm...... He is a billionaire today because he love to 'share' his investment positions with others?
Q1 2018 gold demand is down, lowest Q1 since 2008. https://www.gold.org/research/gold-demand-trends/gold-demand-trends-q1-2018 Now, Mar 19 saw the first of the big falls in the Dow and the DJI has been putting in lower highs since then without getting any lower than that 19th of March close, so the fall would probably have had no impact on the Q1 stats which makes the next Q2 release rather interesting.
Now would be a good time for gold price to follow u.s. dollar up instead of the usual inverse relationship. If u.s. dollar breaks higher, it may cause gold to break lower and extend our pain for a whole lot longer. Sideways.......is becoming the reality.