we can see 3 tops in gold chart in $. So what? I think the ratio gold/s&P500 is bullish but i'm not sure gold will rise in $. The only way to see a bullish ratio without increasing gold price would be a great depression in assets like in 2009.
I was highlighting the fact that GOLD became less attractive vis a vs EQUITIES in early 2009 - this despite the well publicized rise in GOLD since that time... This is because since early 2009 - EQUITIES have benefited from the FED induced liquidity, low rates, and natural rebound off of the lows... It is true that the only way to get a decrease in this ratio if GOLD declines is an even more precipitous decline in EQUITIES... We shall see... GOLD currently consolidating its most recent big up move...
long term tops in gold/s&p500 ratio 1974 : 3, 1980 : ~7.
ReplyDeletehttp://dany44.blogspot.com/2008/09/lor-est-il-cher.html
we can see 3 tops in gold chart in $. So what? I think the ratio gold/s&P500 is bullish but i'm not sure gold will rise in $. The only way to see a bullish ratio without increasing gold price would be a great depression in assets like in 2009.
http://dany44.blogspot.com/2010/11/or-orxeu-et-ratio-ors-ratio-dilemmes.html
What's your opinion ?
Thanks,
Daniel
I was highlighting the fact that GOLD became less attractive vis a vs EQUITIES in early 2009 - this despite the well publicized rise in GOLD since that time... This is because since early 2009 - EQUITIES have benefited from the FED induced liquidity, low rates, and natural rebound off of the lows... It is true that the only way to get a decrease in this ratio if GOLD declines is an even more precipitous decline in EQUITIES... We shall see... GOLD currently consolidating its most recent big up move...
ReplyDeleteSo going forward, next 6-18 months, what does your read on the charts say will outperform, gold or SPX
ReplyDelete