Gold the best performer of 1H 2014
News
|
Posted 07/07/2014
|
3354
USAGOLD produced the chart below showing gold has outperformed every other investment class in the first half of this year. They then talked to 3 fundamental reasons in their eyes as to what could project it further. 1. A possible stockmarket meltdown – they quote famed Jon Hussman who predicted the last 2 crashes when most didn’t and who thinks we are on the brink of a 38-50% US stocks bust; 2. Gold / oil price ratio correction – Gold has tracked oil relatively closely until the April 2013 take down of gold.
At a time of conflicts around major oil fields it is unlikely will to come down to meet gold thus the opposite is over due.; and 3. Gold has underperformed its historic correlation to inflation and this too is over due a correction. Markets always revert to their mean trend and these are 3 classic examples of markets looking over due to do so. The chart also nicely debunks the gold bears dire predictions…