Great Gold Rallies
Charlie Morris of ByteTree points out: “As gold breaks $3,000 for the first time, some investors are getting the jitters. The price has nearly trebled since the low in late 2015, delivering a solid 12% per year since. Trebled sounds like a lot, whereas 12% p.a. doesn’t. The gold move is tame compared to great moves of the past.“
Room to run? $Gold - main 2504(GCmain)$
Reserves Diversification
MacroAlf highlights what many of us already knew: “Central Banks are slowly but surely diversifying away from the US Dollar into Gold.“
But what I find interesting about the chart is how (and note the 2 different axes) gold as a % of global FX reserves now exceeds that of EUR holdings.
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Silver Season
Jay Kaeppel of SentimenTrader points out that we’re about to hit what has historically been a seasonally strong patch for silver.
This comes at a time where silver bulls are already getting excited, and rumors of a silver squeeze start to swirl again. $Silver - main 2505(SImain)$
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Oil vs Gold Sentiment
I highlighted a couple of weeks ago how oil looks cheap relative to gold, this week it’s a look at relative sentiment (i.e. the spread between Consensus Inc bullish % for Oil vs Gold).
This spread has now reached an extreme (the consensus is bearish on oil, bullish on gold) — notably the oil/gold ratio has had a habit of bottoming around extreme lows in the relative sentiment indicator. $WTI Crude Oil - main 2505(CLmain)$
Housing Affordability — Gold edition…
While elevated mortgage rates have put a dent on housing affordability for most, for those lucky enough to be holding enough gold, affordability has improved significantly; with the ounces required to buy a typical new house in the USA dropping to a 12-year low of 137 oz (or just under 4kg of gold).
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