Divergence (noun): the situation in which two things become different. Karl Pearson, a brilliant mathematician born in the 19th century coined the phrase, “correlation does not imply causation”. We as humans, have yet to teach our machines this. Most gold trading is done by algorithms today. The algorithms started selling gold bullion because they were
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Quietly, the outlook for gold is improving. We say quietly because gold recently attained a new all-time high price of $2,077 per ounce and yet there has not been much fanfare. In part this is because the new all-time high did not hold, but nonetheless gold has reached a new all- time high in every
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The firming up of the dollar index in January helped keep a ceiling on various dollar-sensitive assets, including gold which is now back in its rangebound pathway: I expect gold to eventually break out to the upside and likely have a sizable run when it does, but it has to perform that breakout first. Its
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China has spearheaded record levels of central bank purchases of gold globally in the first nine months of the year, as countries seek to hedge against inflation and reduce their reliance on the dollar. Central banks have bought 800 tonnes in the first nine months of the year, up 14% year-on-year, according to a report
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The year-over-year change in the headline inflation data is improving, but longer-term rates of inflation are heading higher, much like they did during the late 1960s/early 1970s. Maybe that’s why gold is ignoring the rise in real rates and remains near all-time highs.
The growing gap between gold and mining companies is about to gain significance as the precious metal gears up for a major breakout, likely marking the beginning of a new long-term cycle for precious metals. Although mining companies are complex capital intensive businesses, there are historical periods when this industry proves to be exceptionally profitable
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David Einhorn’s Greenlight Capital cut its stakes in its top two holdings, U.S. housebuilder Green Brick Partners and Pennsylvania coal miner Consol Energy , and instead plowed millions into gold in the third quarter, the New York hedge fund’s 13F filings show. The hedge fund, which was founded by David Einhorn in 1996, increased its
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Warren Buffett, on investing through the prior episode of U.S. government “Guns and Butter” deficits:
