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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: orkrious who wrote (79471)2/28/2007 7:12:28 PM
From: basho  Read Replies (2) of 110194
 
Bit surprised at Heinz's comments on that ratio.

Viewed over the last 6-7 years, we're closer to mid range than to an extreme. The longer term chart I have is expressed the other way around (ie GOLD:XAU) and the high over that period was 6.3 and the low 3.1. The more usual spike highs (excluding the extreme Heinz mentions in late 2000) tend to be 5.4 - 5.7 and the more usual lows (excluding the Sept 1999 spike) 3.5 - 3.7. We're currently at 4.8.

Also, spikes up in this ratio (or down in Heinz's) have tended to coincide with bottoms in both gold stocks and gold.
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