Corellation? What Freaking Correlation!?

[tmosley]

I was looking up some data for a reply to paper bug on another site, and found that suddenly, it looks like gold is totally uncoupled from the dollar in the long term trend.

10/2/2008: USD: 80.64, Gold $841 Silver $11.31
12/17/2008: USD:80.07, Gold $865 Silver $11.33
7/13/2009: USD: 80.30, Gold $919 $12.85
2/27/2010: USD: 80.33, Gold $1118 $16.50

I didn't pick and choose data points, but rather drew a line from the current value of the USDX back through the chart and found the gold prices on each of those days.

The gold price has gone up 30%, and silver is up 46% in the last 16 months, while the dollar is unchanged. Food for thought, especially for the deflationists out there. Deflation is happening, but it is happening in terms of GOLD and SILVER.

[malkusm]

I was looking up some data for a reply to paper bug on another site, and found that suddenly, it looks like gold is totally uncoupled from the dollar in the long term trend.

10/2/2008: USD: 80.64, Gold $841 Silver $11.31
12/17/2008: USD:80.07, Gold $865 Silver $11.33
7/13/2009: USD: 80.30, Gold $919 $12.85
2/27/2010: USD: 80.33, Gold $1118 $16.50

I didn't pick and choose data points, but rather drew a line from the current value of the USDX back through the chart and found the gold prices on each of those days.

The gold price has gone up 30%, and silver is up 46% in the last 16 months, while the dollar is unchanged. Food for thought, especially for the deflationists out there. Deflation is happening, but it is happening in terms of GOLD and SILVER.

If the value of the dollar is staying the same against other currencies, but is becoming less valuable against PMs (i.e. it takes more dollars to buy PMs), then inflation is occurring, not deflation.

[hugolp]

I was looking up some data for a reply to paper bug on another site, and found that suddenly, it looks like gold is totally uncoupled from the dollar in the long term trend.

10/2/2008: USD: 80.64, Gold $841 Silver $11.31
12/17/2008: USD:80.07, Gold $865 Silver $11.33
7/13/2009: USD: 80.30, Gold $919 $12.85
2/27/2010: USD: 80.33, Gold $1118 $16.50

I didn't pick and choose data points, but rather drew a line from the current value of the USDX back through the chart and found the gold prices on each of those days.

The gold price has gone up 30%, and silver is up 46% in the last 16 months, while the dollar is unchanged. Food for thought, especially for the deflationists out there. Deflation is happening, but it is happening in terms of GOLD and SILVER.

Except gold and silver all other currencies are fiat, so all other currencies are devaluating as fast as the dollar.

I dont know why they call it a system of floating currencies, it should be called a system of sinking currencies. :D

[tmosley]

If the value of the dollar is staying the same against other currencies, but is becoming less valuable against PMs (i.e. it takes more dollars to buy PMs), then inflation is occurring, not deflation.

Inflation in terms of dollars, deflation in terms of gold and silver (real money). This is what I said.

[Bossobass]

I did the same a couple of weeks ago, but I went back to 1995 when gold was $399 and the $ index was 80. I've been saying it for years; the price of gold against the Dollar Index is irrelevant.

The dollar index is a cheap trick used to hypnotize the daily headlines Johns. It gives the psy-op impression that the dollar fluctuates up and down in value when in fact it only ever goes down in value... against everything it can buy, especially gold.

Charts, dollar up/gold down, "Bernanke announces that he has an exit strategy", etc., are pure Bullshit used to speculate (depress or inflate the spot price against fiat paper). People have become so used to it that they actually believe there is some sort of magic chart or time of year, etc., that will predict the price of gold against the USD.

The IMF isn't "dumping" gold. It's transferring it to various Central Banks because, in order to sell a new One World Currency, they'll have to include a requirement of a percentage of gold to buy into the new currency, at which time all of the gold will go straight to the IMF vaults.

The new global currency will probably be valued against a basket of resources (gold, silver, coal, oil, timber, water, etc.) which the banksters will confiscate in exchange for wiping out the staggering debt owed by all countries and which all countries have in one form or another.


US Treasury Secretary Tim Geithner confessed on Wednesday that he had not read the plans by China's central bank governor for a "super-sovereign reserve currency" run by the International Monetary Fund, but nevertheless let slip that Washington was "open" to the idea. Whoops.


China's proposal is to activate the IMF's power to issue Special Drawing Rights (SDRs). The IMF would be groomed as de facto central bank for the planet. The SDRs would gradually become an "accepted means of payment". Call it the 'globo'.


In theory, this world reserve bank would be above politics. China's plan suggests a resource currency along the lines of the "Bancor" floated by Keynes at Bretton Woods. This was anchored on 30 commodities, giving it a broader base than the Gold Standard. Such a currency would prevent the "credit-based" debauchery of today's fiat system, says Mr Zhou.

Point is... ignore the dollar index and buy gold and silver because gold and silver will buy a butt load more 'globos" than US dollars will.

Bosso

[tmosley]

I did the same a couple of weeks ago, but I went back to 1995 when gold was $399 and the $ index was 80. I've been saying it for years; the price of gold against the Dollar Index is irrelevant.

The dollar index is a cheap trick used to hypnotize the daily headlines Johns. It gives the psy-op impression that the dollar fluctuates up and down in value when in fact it only ever goes down in value... against everything it can buy, especially gold.

Charts, dollar up/gold down, "Bernanke announces that he has an exit strategy", etc., are pure Bullshit used to speculate (depress or inflate the spot price against fiat paper). People have become so used to it that they actually believe there is some sort of magic chart or time of year, etc., that will predict the price of gold against the USD.

The IMF isn't "dumping" gold. It's transferring it to various Central Banks because, in order to sell a new One World Currency, they'll have to include a requirement of a percentage of gold to buy into the new currency, at which time all of the gold will go straight to the IMF vaults.

The new global currency will probably be valued against a basket of resources (gold, silver, coal, oil, timber, water, etc.) which the banksters will confiscate in exchange for wiping out the staggering debt owed by all countries and which all countries have in one form or another.







Point is... ignore the dollar index and buy gold and silver because gold and silver will buy a butt load more 'globos" than US dollars will.

Bosso

Agreed. Do you have the numbers for that analysis? It would be helpful to show the longer trend.