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Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (1862)	7/6/2021 10:49:16 PM
From: Sun Tzu	1 Recommendation Recommended By Anchan Respond to of 10550

This chart shows the price of gold relative to the dollar and the interest rates schrts.co For comparison, I'm also plotting the actual price of gold (the black line). If you ignore 2020, where the interest rates were shocked into oblivion, you see that the value of gold, as represented by the chart, fluctuates far less than the price of gold. The price of gold moves in the direction of the value of gold. For example, the 6 months from September 2017, the price of gold moved up while the value of gold dropped. Unsurprisingly this situation could not continue and the price of gold dropped to join its true value. A similar thing happened in 2012. Everytime the price of gold got too far ahead of its value, it pulled back. So here we are in 2021 and difference between the price of gold and the value of gold is huge. For the price of gold not to fall, interest rates and the USD have to fall so that the value matches the price. Unfortunately for the gold bugs, the interest rates and the dollar are on the rise.