gold, page-11170

Hi Guys,

Below is a chart which I copied from somewhere else. It shows the performance of six major asset class since the last FED rate hike. You can see how gold and gold stocks have outperformed all of them.
It is widely believed that rate hikes are bad for gold but the chart proves exactly the opposite.
Yes if the rates were around like 1980(Paul Volcker's time), that would hurt gold but when the rates are even far below the inflation rate, it can't hurt gold.


Also there is another chart which will show how undervalued the gold stocks are compared to other S&P 500 asset class. The move we have seen so far is hardly visible which tells how far it has to move further to even reach fair value. Let alone bubble territory.

  

Around the Dec15-Jan16 period the value of the gold stocks was almost approaching zero compared to other S & P 500. So basically the move we have seen so far has resulted to the value of gold companies move from .025 to .046.

There is so much fear in the gold market still, which tells us we are still very close to the bottom.

I think above is a very useful chart to visualize where we came from, where we are now and where we can be in due course of time. I think its a very useful information and will post all around for everyone.

Just some thoughts.

All the best.