- 08 Agosto 2018
- by Blogger
- Gold sentiment is reaching for an extreme bearish low.
- The drop in gold during the summer is largely explained by a stronger US dollar.
- Lease rates continue to indicate tight short-term supplies.
- The Dow-to-Gold ratio is very high, arguing for better relative gold quotes soon.
- Gold is quite cheap adjusted to M-1 money supply growth and real-world inflation.
Admittedly, the idea of gold ever going up again, much less quickly, seems a little crazy today. However, when you look at the ultra-low valuations of gold today versus stock market prices, long-term paper money creation, and honest U.S. inflation rates, you start to see the potential for a big upmove in this “hard money” precious metal. While everyone is fascinated by the bitcoin mania of 2017-18, few are looking at the old relic of gold as a better investment alternative going into a future economic recession and/or stock market panic.