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BentleyBoy

367 Posts.

24

22/04/24

15:01

Post #: 73458787
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Originally posted by 1ronnie: ↑

3 periods when S&P500 performed badly and see how AUD Gold performed:

1 Dec 2021- 1 Sept 2022
S&P500 fell -24.78% from 4,766 to 3,585
XGD fell -22.62% from 6,007 to 4,648
AUD fell -2.7% from 69.95c to 68.06c
AUD Gold rose +3.1% from $2,516 to $2,594

10 Feb 2020- 16 Mar 2020
S&P500 fell -31.8% from 3,380 to 2,305
XGD fell -22.24% from 7,083 to 5,508
AUD fell -13.5% from 67.14c to 58.07c
AUD Gold rose +9.4% from $2,359 to $2,581

1 Oct 2007- 1 Feb 2009
S&P500 fell -52.55% from 1,549 to 735
XGD fell -23.19% from 6,486 to 4,982
AUD fell -31.55% from 93.41c to 63.94c
AUD Gold rose +73% from $853 to $1,476

Now what I am showing you is no coincidence.

Time proven:
1. Gold stocks as represented by XGD falls during an equities meltdown period
2. AUD falls reflecting Risk OFF during an equities meltdown period
3. AUD Gold gains during periods of adversity and equities meltdown period as it stood benefit from a higher Gold price on a falling AUD. AUD Gold is physical/ETF not Aussie Gold stocks.

So a rotation from equities and gold stocks into AUD Gold ETF would in my view and as proven by history to be a sensible move if you believe we are on the cusp of an equities meltdown.

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thank you once again for all of the work that you do. My Nabtrade account won't allow me to buy those precious metal ETFs.
Any suggestion or alternatives?
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0 Great analysis

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