Kitco Gold Index

Discussion in 'Gold' started by goldpelican, Apr 17, 2011.

  1. goldpelican

    goldpelican Administrator Staff Member

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    Anyone seen this?

    [​IMG]
    Source: http://www.kitco.com/kitco-gold-index.html

    Kitco have developed a new "gold index" that plots what is touted as being the real growth in gold independent of the USD. Basically they measure gold against the same basket of currencies as the USD is measured against to derive the USD index (which means there's over a 50% weighting to Euros).

    So as one might expect, gold in the new index is showing flatter growth than in USD (because the USD is inflating), but as a whole, gold is going up in value relative to every currency.
     
    goldpelican, Apr 17, 2011
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  2. Captain Kookaburra

    Captain Kookaburra Well-Known Member Silver Stacker

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    It's been there for quite a while. At least 6 months.
     
    Captain Kookaburra, Apr 17, 2011
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  3. projack

    projack Well-Known Member Silver Stacker

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    Never really understood how they come up with these percentages and why they picked cretin currencies like the Swedish Krona.
    The euro is so overweight anyway that whole index is basically a measurement against the Euro.
    The dollar, euro, pond, andthe yen probably represent 90% of the world debt today.
    Trillions printed amongst them yearly
     
    projack, Apr 17, 2011
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  4. silvertongue

    silvertongue Member Silver Stacker

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    Yeah, but a chart like this doesn't hurt Kitco's business either.
     
    silvertongue, Apr 17, 2011
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  5. Skyblues

    Skyblues Member

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    Yup, honesty sells in volatile times...The natural question that follows GP's post is does kitco or anyone else do a silver equivalent of this, better yet one that includes RMB in the basket? Kitco does not seem to have a 'kitco silver index', might be on its way though...
     
    Skyblues, Apr 17, 2011
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  6. projack

    projack Well-Known Member Silver Stacker

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    If you measure gold only against AU$ and compare it against the US$ the difference is 100 % in the last ten years.
     
    projack, Apr 17, 2011
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  7. samboyellowsub

    samboyellowsub Member

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    Its all fiat. Of course its going up :)

    I think one could infer from the XAU (something like the XAG maybe?) using the GSR that is posted right under their index under the "All Metals Quotes" tab on their site.
     
    samboyellowsub, Apr 17, 2011
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  8. projack

    projack Well-Known Member Silver Stacker

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    And that also means if the USD would be 100% weighted in AU$ the US trade weighted index would be around 49 not the current 75 based on the last 10 years figures
     
    projack, Apr 17, 2011
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