Conspiracy theory - USD/Rubles/Gold The ruble is in freefall. Even now with rates pegged at 17%, the bleeding was only marginally curtailed.
The effect in the greenback? USD Index actually pulled back a little.
Gold? Again below $1200US/oz today.
Gold, when compared with other commodities using historical data is overvalued.
To name a few:
- Gold to Silver ratio
- Gold to USD
- And most-importantly, gold to oil
Could the price of paper gold have been bolstered by our friends over at the Comex and London in an effort to make the greenback less attractive? 6 weeks ago, Japan okayed yet more mind-boggling
Abenomics and the Ruble continues its perilous plight to nothingness. With
OVERALL positive data coming out of the U.S. month-over-month, one wonders what the USD Index would look like had gold been priced more in tune with its historical position relative to other commodities.
Think about it. For the last 3 months, pretty much in line with the end of U.S. QE, gold has been priced in a relatively tight range (1175-1225). Could this range have been put in place artificially in an effort to stem interest from the greenback?
Something will have to give. Either all commodities surrounding gold will need to increase in value, or the POG will have to come down. I do not believe that this situtation is the new normal. In my mind, a new normal can only take hold after years of consistent performance and data.
Am I nuts?
Wait, don't answer that question. :)
Shat