Federal Reserve Assets vs. Gold Price Historical Correlation

The price of gold has historically been positively correlated with the expansion of Federal Reserve Assets. In September 2012, this correlation was broken. W…
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Gold has broken below the 00 support level and is heading down to 00. Where will gold ultimately bottom? http://DailySilverUpdate.com.

15 thoughts on “Federal Reserve Assets vs. Gold Price Historical Correlation

  1. NHP Silver

    I think the fed will create a perception of shrinking the balance sheet,
    during 2015, which will probably bring down PMs even more drastically. Then
    they’ll reverse course in late 2015 or early 2016 during another crisis and
    PMs will create new all time highs, maybe $2400 & $60. Then prices will
    settle to $1800-2000 & $40-45. I don’t see a big rocketing of PMs until
    next decade. 

  2. Antoine Kerfzhan

    What I don’t understand is what is going to be the value of gold in the new
    currency? If its the Amero for example it is supposed to be 1200 ameros or
    3200 ameros 15000 ameros? The Yen? The Ruble? There is this assumption that
    gold will have equal or greater value in the new currency. Gold could be
    reduced way way down to intentionally to hurt brics, or the dollar further,
    the fed and/or revalue the whole currency. The new value of the currency
    and/or a massive devaluation and/or reset is just that…yet no one knows
    when or where. This group trying to kill the dollar must be propping up a
    different currency how do you build confidence by surprise? Maybe it is the
    dollar itself and this is more about land or assets then cash? Dunno. Pain
    is understandable in change. It isn’t change that scares me its what we are
    changing into that does. 

  3. iamgogi

    Another possibility. There is no FED balance sheet to gold
    relationship…just lots of imagination among the goldbug community. Maybe
    it is a mutually exclusive relationship. Kinda like tall building to tall
    mountain relationship. If buildings are getting taller, does not mean the
    mountain will too.

  4. hotneo7

    It has to go higher than 1900 if you account for dollar devaluation during
    that time. Doubt the interest rate will go up ever. It’s game over.

  5. Joseph Maximus

    With the gold to silver ratio so broad it seems better to sell your gold
    and buy silver, I think those that do will make out
    very well.

  6. esq8

    It’s pretty difficult to forecast prices that are totally manipulated.
    Here in Australia this morning they’re saying that investors are exiting
    gold (i.e. real story is banks are dumping ETFs of course to make it look
    like that). Anyway, who doesn’t love a sale.

  7. hotneo7

    Japan’s Super QQE + ECB QE + Fed QE taper in Oct + USD rising = gold going
    down and even further if they raise rates in 2015. Oh it’s Christmas all
    right…a golden Christmas!

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