Browse Symbol Stacks: $GOLD: 20160730_2golds.png
I don't say gold is not in bull market. Just keep in mind there is bear case. The difference between now and 1982 is the president. Ronald Reagan have been libertarian like Margaret Thatcher was.
Regardless of who wins in November the next US president will be an economically-illiterate populist.
In june of 1982 when gold was at 300, S&P index (without dividends,remember!) was 110... ya...
In 2016 when gold was at 1045 S&P was around 2075
FED funds rates where around 10% in 1982 now?... 0,50% and even worse: at the end of the tightening cycle !
this tightening cycle began in 2013 with the taper talks, then the real taper, then no QE at all, then a 0,25% rise in interest rates.
Saying "rates are very low" is EXACTLY saying the same thing as "money is in abundance" even if you don't see it in the real life! In fact when we gonna start seeing it(in the real economy), it's when the purchasing power of that money will fall (gold and other consumables goes up in price) so much so that you will have more money (maybe much much more) but you gonna be able to buy less real goods or services with that new amount of money.
That's the effect of the whole monetary system on the long run
So money is still in abundance and, looking forward, gonna be more (maybe waaaaayyyy more than everybody anticipate) because of the new easing cycle the fed will start.
For gold it's a new bull market (potentially huge) that gonna start
I think the market already reversed but the low is not in and will be caused by a flash crash followed by an even bigger flash surge...
That would explain why mining stocks are so aggressively bought with extreme volume
(smart money trying to get in those tiny markets without using leverage)
But hell in earth for leveraged buyers.
For sellers, they don't even have to be on leverage to meet hell with silver!
So, only options or buy side without leverage, for your sake
Gold didn't exploded that year to say the least but rised in the years that followed as confidence was gradually coming back.
As it is an interest rate, it can be used kind of a bounded indicator
And show that today confidence is higher than in 2011 at the height of the european debt crisis
It's the right URL yet, I don't understand
So I guess the response is no but what is that?
I just found this site by looking for TED spread on google
But free content and interface seems pretty good, that's the only thing I can say