The ratio of XAU Index to Spot Gold (12/23/1983-4/30/2020)
Senior miners are currently trading at a ~7% premium to their underlying net asset values (NAVs), while junior miners are trading at an ~81% discount.
- 1934: President Roosevelt famously devalues the dollar relative to gold from $20 to $35 per ounce AFTER CONFISCATING it. This represents a 75% move.
- 1944: The Bretton Woods Agreement pegs the dollar to gold at a ratio of $35 per ounce, which Washington defaults on, creating a 2,400% move in the 1970s.
- 2008: Gold rallies to an all-time high by September 2011 of $1,930 INTRA-DAY.
Hedge Fund Luminaries Are Lining Up Behind Gold Again
Money printing by central banks and vast state stimulus packages are rekindling interest in one of the oldest stores of wealth. It’s a revival of a trade that became popular in the wake of the 2008 crisis, as money managers piled into gold for similar reasons, but were ultimately disappointed as inflation was kept in check. Yet the unprecedented scale of the government response to the coronavirus crisis is feeding the argument that this time will be different.
The relationship between the US and China was already teetering close to the edge of a cliff before COVID-19, but the pandemic pushed it right off.
- The US and China have entered the beginnings of a new Cold War in the coronavirus era, experts say.
- "We're essentially in the beginnings of a Cold War," the director of the Center on US-China Relations at the Asia Society told Insider, warning of "grave" consequences for the global economy.
- "For the international system as a whole, a Cold War would be devastating," the director for Asia studies at the Council on Foreign Relations told Insider, adding that it could "force countries to choose a side."
- Visit Business Insider's homepage for more stories.
At this stage it is still too early to conclude that silver has gotten enough momentum to capture some the lost ground, both against the dollar and against gold. For that to happen the metal first needs to break below 109 on the XAUXAG ratio and/or above $16.15/oz on SILVERJUL20, the April high and the 61,8% retracement of the February to March sell-off.
Silver Needs To Surge Above $16.15 To Break Out
Om Tysklands IFO index är vägledande för MSCI World så skall företagens vinster ned betydligt mer än vad som har diskonterats
recessions, and extreme turmoil, can lead to a massive spike in the gold/silver ratio. Gold goes up, and silver stays flat (or falls).
Just prior to World War II as Hitler launched his invasion of Poland, the ratio spiked to 98:1.
In 1991 as the first Gulf War began, the ratio again reached 100:1.
Today we’re back again in that territory; as of this morning, the ratio is 110:1, and it’s been as high as 120 or more in recent weeks.
Om Nordeas modell stämmer så har vi snart negativ lång ränta i USA. FEDs Fund futures noterade negativ ränta i december 2020
Now that the seal has been broken, the Eurodollar market is starting to panic, sending Fed Fund futures soaring to contract highs with the first priced in negative rate now shifting from Jan 2021 to Dec 2020 in what appears to be the next market test of the Fed, with stocks, bonds and now FX starting to actively price in negative rates so soon as 6 months from today!