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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Perspective who wrote (86860)	9/25/2007 1:24:03 PM
From: bart13	Read Replies (1) \| Respond to of 110194

So, should gold track the CPI? Or money supply? It doesn't track either one but is affected by them and other factors like negative real interest rates, fear, confidence in the currency, etc. Here's a long term chart for example that shows that major gold turns are strongly correlated to turns in real interest rates. Gold is international - how do you account for all the currency around the world in the equation? Simply - I don't. That chart is just one way of approaching the area. But do consider that the US is still about 25% of the world and that all the major central banks are inflating in similar manner. Also consider that custodials is an international measure.